Crozet, Matthieu; Trionfetti, Federico - In: Journal of International Economics 91 (2013) 2, pp. 321-328
We study the consequences of heterogeneity in factor intensity on firm performance. We present a standard Heckscher–Ohlin model augmented with factor intensity differences across firms within a country–industry pair. We show that for any two firms, each of whose capital intensity is, for...