In previous work (Kee and Krishna (2008), "Firm Level Heterogeneous Productivity and Demand Shocks: Evidence from Bangladesh," American Economic Review, 98(2)) we argued that two dimensions of firm heterogeneity (firm specific productivity and firm and market specific demand shocks) were needed...

We explore the impact of vertical specialization - trade in goods across multiple stages of production - on the relationship between trade and international business cycle synchronization. We develop a model in which the degree of vertical specialization is endogenously determined by comparative...

We incorporate learning in a monopolistically competitive model of trade with heterogeneous firms. Exporting firms face uncertainty about the demand their product faces in a given market and decide how much marketing to invest in. The incorporation of marketing in the model is essential because...