Bernard, Andrew B.; Redding, Stephen J.; Schott, Peter K. - C.E.P.R. Discussion Papers - 2004
This Paper presents a model of international trade that features heterogeneous firms, relative endowment differences … across countries, and consumer taste for variety. The Paper demonstrates that firm reactions to trade liberalization generate … wide range of firm-level reactions to falling trade costs, the model also shows that, as trade costs fall, firms in …