A key distinction which has emerged from heterogeneous firm models of international trade is that of exporting at the intensive and extensive margins. Empirically however, the two are often conflated, leading to biased estimates of the impact of falling trade costs. This paper exploits detailed...

This paper investigates the effects of international trade on firms' exit decision in Sweden, where exit can be by closedown, switching industry or being acquired. We find that higher levels of international competition increases the probability of exit by merger and closedown compared to no...