Are financial constraints preventing firms from importing capital goods? Sourcing capital goods from foreign countries is costly and requires internal or external financial resources. A simple model of foreign technology adoption shows that credit constraints act as a barrier to importing...

Does an increase in imported inputs raise exports? We provide empirical evidence on the direct and indirect channels via which importing more varieties of intermediate inputs increases export scope: (i) imported inputs may enhance productivity and thereby help the firm to overcome export fixed...

We examine the gains from globalization in the presence of firm heterogeneity and potential resource misallocation. We show theoretically that without distortions, bilateral and export liberalizations increase aggregate welfare and productivity, while import liberalization has ambiguous effects....