This paper uses plant level data from Chile to show that an increase in sector-wide exports decreases the survival probability of exporters, but not that of non-exporters. We argue that this result can be explained by the fact that exporters and non-exporters use factors of production in...

We embed a competitive search model with labor market discrimination, or nepotism, into a two-sector, two-country framework in order to analyze how labor market discrimination impacts the pattern of international trade and also how trade trade affects discrimination. Discrimination, or nepotism,...

Empirical evidence has shown that exporters are more capital intensive than non-exporters. Based on this evidence, I construct a two-factor general equilibrium model with firm heterogeneity in factor intensities, monopolistic competition, scale economies and international trade. This setting can...

We embed a competitive search model with labor market discrimination into a two-sector, two-country framework in order to analyze how labor market discrimination impacts the pattern of international trade and also how trade affects discrimination. Discrimination reduces the matching probability...

Empirical evidence suggests that sectoral export growth decreases exporters’ survival probability, whereas non-exporters are unaffected. Models with firm heterogeneity in total factor productivity predict the opposite. To solve this puzzle, we develop a two-factor framework where firms differ...

We build a dynamic general equilibrium model with 2 countries, horizontal and vertical multinational activity and endogenous domestic and foreign investment. It is found that horizontal multinational activity always leads to a complementary relationship between domestic and foreign investment....

This paper presents a trade model with capital and labor as factors of production. The main contribution of this paper is that it considers a new type of firm heterogeneity, which is empirically relevant: firms in this paper differ with respect to their factor shares in production. Therefore,...

This paper uses plant-level data from Chile to show that an increase in sector-wide exports decreases the survival probability of exporters, but not that of non-exporters. We argue that this result can be explained by the fact that exporters and non-exporters use factors of production in...