This paper develops a monopolistic competition model of multiproductfirms to explain the effect of trade liberalization on the product mix of multiproductexporting firms. The model shows that input-tariff reduction leads to increasesin a firm’s export values, especially for products that are...

This paper investigates whether and how import competition affects firm innovation. Using China’s World Trade Organization (WTO) accession as a quasi-natural experiment, we find that import competition reduces firm innovation, which is consistent with the Schumpeterian effect. We also find...

While trade in goods has been investigated extensively over decades, studies on trade in services are relatively new. In this paper we investigate the impacts of information and communication technology (ICT) on trade in services . We measured ICT by four dimensions, including the subscriptions...

This paper investigates how changes in skilled and unskilled labor supply affect different margins ofexports. Using bilateral trade data in manufacturing sectors of 34 countries from 1995 to 2010, we find thatmost of the impact of skilled labor on exports goes through the intensive margin,...

This paper studies the multi-product firms with two factors of production: unskilled and skilled labor (talent). Creating new products is skill intensive while production is less skill intensive. By introducing these two tasks a firm operates which act as two seemingly sectors, we show here a...

This paper presents theory and evidence from Chinese firm-product data that, given firm productivity, trade liberalization increases product markups. This finding calls for a reconsideration of the well-established imports-as-market-discipline hypothesis. This paper further verifies underlying...