Bernard, Andrew B.; Redding, Stephen; Schott, Peter K. - 2009 - Rev.
and countries. Firms' export decisions depend on a combination of firm “productivity” and firm-product-country “consumer … tastes,' both of which are stochastic and unknown prior to the payment of a sunk cost of entry. Higher-productivity firms … export a wider range of products to a larger set of countries than lower-productivity firms. Trade liberalization induces …