This paper seeks to present a unified framework for several factors that have been independently studied as determinants of unit values in international trade: product differentiation by quality (which suggests that unit values should be positively correlated with exporters' per capita income),...

This paper aids our understanding of the link between innovation and exporting behavior by detailing how firms may purposefully decide on the source country for the imported innovation and the market that they ultimately serve. We argue that firms who invest in the state-of-the-art technologies...