Olper, Alessandro; Pacca, Lucia; Curzi, Daniele - European Association of Agricultural Economists - EAAE - 2014
Melitz and Ottaviano’s (2008) firm-heterogeneity model predicts that trade liberalization induces a selection process from low to high productivity firms, which translates to an industry productivity growth. A similar firms’ selection effect is induced by market size. In this paper, these...