In this paper, I decompose the growth of disaggregated bilateral trade flows into the contributions of changes in aggregate expenditure, number of varieties, trade costs, product appeal, production costs, and multilateral resistance terms. I obtain theoretically consistent empirical measures for...

This paper develops a framework for studying the general equilibrium effects of endogenous quality upgrading, a new margin of trade, on the welfare impact of trade liberalization. Unlike Fajgelbaum et al. (2011) which studies the effect of non homothetic preferences on output quality and...