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Firm heterogeneity and country size dependent market entry cost

Akerman, Anders; Forslid, Rikard - 2009

model. Nevertheless, our model yields several new results that are in line with data. First, the average productivity of … firms located in a market increases in the size of the market. Second, the productivity of exporters is U-shaped with … reference to export market size. Third, the productivity premium (the difference in average productivity) between exporters and …

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