Ignoring strategic interactions among final goods producers, the extant theoretical literature shows that lower costs of imported inputs increase the exports of the final goods using those inputs. Hence, it does not explain the empirically relevant positive relationship between the costs of...

The cost of complying with a sanitary standard is certain. However, such regulatory measure is a source of uncertainty for exporting firms in relation to border rejections. Shipments may fail to pass inspections and may be refused entry into the importing country. We examine how the risk of...

We investigate the impact of import competition from low-cost countries on the exit of domestic firms from the manufacturing industries of eight European countries. We find a significant positive impact on the exit of large firms, while small firms are not directly affected.The empirical...

We investigate the impact of import competition from low-cost countries on the exit of domestic firms from the manufacturing industries of eight European countries. We find a significant positive impact on the exit of large firms, while small firms are not directly affected. The empirical...