This paper develops a model of international trade where firms are heterogeneous across capacity and productivity. A … markets with a flexible competitive structure giving rise to instances where trade and trade liberalization negatively impact …

This paper embeds a principal-agent firm in an otherwise standard trade model a la Melitz (2003) to investigate the … less productive firms use a lowered- powered one. International trade within an industry enhances market competition … international trade on firms that differ in their exporting status and pay structure result in more prevalence of high …