Traditional heterogeneous firms and trade models predict no causal relationship between firms' exports and domestic sales. This paper, using a rich dataset on Turkish firms for the 2005-14 period, analyzes the relationship between firm-product sales in different markets for the first time in the...

China's policy of encouraging export processing has been the topic of much discussion in the academic literature and policy debate. We use a recently developed econometric approach that allows for time varying "treatments" and estimate economically and statistically significant positive causal...

This study explores firm-level data from the Philippines to uncover new stylized facts about the participation of manufacturing small and medium enterprise (SMEs) in global value chains (GVCs). The empirical analysis shows that manufacturing SMEs are weakly connected to foreign markets,...

This paper examines the impact of WTO membership on the extensive and intensive margins of product and labor market power of Chinese manufacturing firms during the period 1999- 2006. We first identify a firm's regime of competitiveness, corresponding to a combination of a product market setting...

Using the establishment of U.S.-China Permanent Normal Trade Relation as a plausibly exogenous shock, we study the effect of trade liberalization on domestic entrepreneurial entry and new foreign plants in an emerging market. The positive effect on entry rate is concentrated among foreign plants...

Several studies using firm-level data could not find significant evidence to support that exporting activities promote productivity growth. However, few studies have considered whether exporting companies can create spillovers to domestic firms. In fact, exporting companies create positive...

We study the effect of services trade restrictiveness on manufacturing productivity for a broad cross-section of countries at different stages of economic development. Decreasing services trade restrictiveness has a positive indirect impact on the manufacturing sectors that use services as...

We construct a new linked data set with over one thousand off shoring events by matching Trade Adjustment Assistance program petition data to micro-data from the U.S. Census Bureau. We exploit this data to assess how offshoring impacts domestic firm-level aggregate employment, output, wages and...

Fragmentation of production and sourcing of intermediates from across the globe, popularly referred to as offshoring, is typically associated with lost jobs and displaced workers. Often ignored however, is a dimension of productivity-enhancing, within-firm reorganization spurred by offshoring....

This paper examines the effect of trade liberalization or globalization, more broadly, on plants' growth as well as on “bi-polarization”. To do so, we reviewed the possible theoretical mechanisms put forward by recent heterogeneous firm trade theories, and provided available micro-evidence...