We study, both theoretically and empirically, how trade imbalances affect the structure of countries exports and wage inequality. We show that, in a Heckscher-Ohlin model with a continuum of goods, a Southern (Northern) trade surplus leads to an increase (reduction) in the average skill...

In a representative sample of Italian manufacturing firms, we find a robust negative correlation between productivity (however measured) and sales to low-income destinations as a share of total exports. This fact seems at odds with the heterogeneous-firms literature, which predicts...

We study the equilibrium determinants of firm-level heterogeneity in a model in which firms can affect the variance of their productivity draws at the entry stage and explore the implications in closed and open economy. By allowing firms to choose the size of their investment in innovation...

We use transaction-level US import data to compare firms from virtually all countries in the world competing in a single destination market. Guided by a simple theoretical framework, we decompose countries' market shares into the contribution of the number of firm-products, their average...