A stylized fact from the literature on the Micro-econometrics of International Trade and a central implication of the … heterogeneous firm models from the New New Trade Theory is that exporters are more productive than non-exporters. It is argued that …

This paper investigates the impact of long-run terms-of-trade shocks. Analytically, we show that, if capital goods are … during 1965-89. Favorable terms-of-trade shocks increase investment and (especially government) consumption, but reduce …, but Dutch Disease effects are strikingly absent. Investment, consumption, and nontradable output respond more to a terms-of-trade …