Firms display remarkable persistence in exporting and importing status. However, export and import status do not … overlap perfectly, as some exporters do not import while some importers do not export. Motivated by these facts, I develop a … dynamic discrete choice model of a firm’s decision to import and export. A firm needs to pay either sunk costs to initiate an …

, firms that engage in the foreign production of final goods, in addition to export activities, are more productive than firms … that only export abroad. Second, firms that engage in final goods off-shoring are more productive than firms that engage in …

between export and FDI. The model combines the proximity-concentration trade-off framework with the real option methodology …