This paper investigates the effect of trade cost changes on the spatial productivity distribution in Korea. Data on gross value added and primary factors for 163 spatial units during 2000-2005 are assembled to estimate local TFP using a value-added function. In our application, we control for...

This study uses a unique firm-level dataset to examine how falling trade costs from 1993-2001 affected entry, exit, productivity, and exporting in the Korean manufacturing sector. We verify many of the predictions of recent heterogeneous-firm models of international trade. For example, falling...