This paper examines the interdependence between innovation and imports of intermediates, and their joint impact on productivity. We do so by developing a quantitative model with heterogeneous firms and international trade where firms can invest in R&D and source inputs internationally....

: The positive relationship between firm size and export behaviour is often considered certain. However, the vast number of studies in this area shows discrepancies in the findings: the majority of them confirm a positive and statistically significant relationship, some studies found no...

This paper shows that vertical specialisation can increase the elasticity of trade to income, hence explaining dramatic events such as the great trade collapse. We argue that a change in the extent of vertical specialisation affects the elasticity of trade to income, while a mere change in...

The paper investigates the dynamics of export relationships � defined as shipments by a given firm to a given destination in a given year � in a panel of almost 25,000 French exporters over the five-year period 1995-1999. It describes how the relationships evolve over time, presenting...

This paper explores the determinants of firm survival in export markets. Our theoretical framework includes a geometric Brownian motion for firm profitability, market-specific sunk and fixed exporting costs that are common across firms, and firm- and market-specific profitability shifters that...

This paper explores the impact of input trade liberalization on imported input and exported product prices. Using Chinese transaction data for 2000–2006, we capture causal effects between exogenous input tariff reductions and within firm changes in HS6-traded product prices. For...

This paper examines whether financial development reduces the impact of credit constraints on the exporting decision using firm-level data across 17 developing countries. We approximate credit constraints by a firm's liquidity ratio. In line with a Melitz-type model with borrowing frictions, the...

How are the dynamics of foreign and domestic sales correlated at the firm level? The question is relevant in that the sign of the correlation shapes the international transmission of shocks and the effects of policy measures. From a theoretical perspective, the correlation could be either zero,...

This paper examines inter-country variations and growing volume of Intra-industry trade for thirty rapidly industrializing Asian and Latin American countries in the 1990s. With rapid industrialisation, intra-industry trade in manufactured products have increased substantially. We find that...

The link between regional integration and intra-industry trade (IIT) has been under scrutiny since it has been first suggested by the European integration process. However, the lack of reliable data and the difficulty to find a robust model for IIT made this relationship difficult to prove. This...