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...

The concept that exporters learn from their exporting experience is a theoretical result that needs to be tested empirically. However, the literature provides mixed evidence. In this paper, to estimate productivity, an approach suggested by De Loecker is applied, which corrects for econometric...

We provide the first quantified evidence on the impact of the media on consumers' evaluation of product quality and their welfare in international trade. Our estimation is based on an exploration of the changes in the global dairy product trade following the Chinese milk contamination scandal in...