Olper, Alessandro; Pacca, Lucia; Curzi, Daniele - International Agricultural Trade Research Consortium - IATRC - 2013
Melitz and Ottaviano’s (2008) firm heterogeneity model predicts that trade liberalization induces a selection process from low to high productivity firms, that translates into an industry productivity growth. A similar firms’ selection effect is induced by market size. These predictions are...