We review the micro-level evidence on the effects of trade and investment liberalization in the developing world. The basic findings are the following. There is evidence of trade-induced productivity gains. These gains mainly stem from output share reallocations among firms with different...

We study how firm and foreign market characteristics affect the geographic distribution of exporter' sales. To this purpose, we use export intensities (the ratio of exports to sales) across destinations as our key measures of firms'relative involvement in heterogeneous foreign markets. In a...

This paper investigates the relationship between trade openness and the size of governments, both theoretically and empirically. We argue that openness can increase the size of governments through two channels: (1) a terms-of-trade externality, whereby trade lowers the domestic cost of taxation,...