Blyde, Juan; Pineda, José - Inter-American Development Bank - 2009
of new trade models with heterogeneous firms (Bernard et al., 2003 and Melitz, 2003). In these models, freer trade … the theory to analyze whether a reduction in trade costs increases the probability of becoming an exporter relatively more … in industries with greater microeconomic flexibility and whether plant exit driven by trade costs declines is more likely …