This paper uses plant–level data from Chile to show that an increase in sector–wide exports decreases the survival probability of exporters, but not that of non–exporters. We argue that this result can be explained by the fact that exporters and non-exporters use factors of production in...

Empirical evidence suggests that sectoral export growth decreases exporters\' survival probability, whereas non{exporters are unaffected. Models with firm heterogeneity in total factor productivity predict the opposite. To solve this puzzle, we develop a two-factor framework where firms differ...