Firms have increasingly conducted different stages of production in different countries. In particular, they set up operations in low-cost countries (those operations are referred to as foreign affiliates in those countries) as platforms for export. What is the exporting behavior of foreign...

This paper provides the first evidence about pure exporters (i.e., firms exporting all of their output to the foreign market) -- a phenomenon overlooked and cannot be explained in the existing literature. It then offers a generalized model of Melitz (2003) for examining the existence and...