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We examine the quantitative predictions of heterogeneous firm models à la Melitz (2003) in the context of the Canada - US Free Trade Agreement (CUSFTA) of 1989. We compute predicted increases in trade flows and measured productivity across a range of standard models and compare them to the...
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branches to forecasting export growth across a multitude of European countries. Our pseudo out-of-sample analyses reveal that … indicators are superior: the Export Climate, the Production Expectations of domestic manufacturing firms, the Industrial … forecasters in order to choose the best-performing indicators and thus increasing the accuracy of export forecasts. …
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