There has been great focus in the recent trade theory literature on the introduction of firm heterogeneity into trade … only form of trade restrictions. Moreover, a standard assumption is that firms differ across marginal cost, yet empirical … in trade restrictions, a necessary step towards studying strategic trade policy. In addition, I highlight the differences …

product attribute dimension that significantly drive net trade patterns and reduce the volume of trade. Further it is shown … trade volume to liberalization as it took time for each country's industry structure to adapt to the demand structure of the … common market. To rationalize such trade patterns, a structural model of demand featuring consumers with homothetic …