This volume was prepared by Inga Heiland while she was working at the Ifo Institute. It was completed in July 2016 and accepted as a doctoral thesis by the Department of Economics at the University of Munich. It comprises five chapters addressing one or more aspects of international trade and...

Empirical evidence suggests that sectoral export growth decreases exporters' survival probability, whereas this is not true for non-exporters. Models with firm heterogeneity in total factor productivity (TFP) predict the opposite. To solve this puzzle, we develop a two{factor framework where...

This volume was prepared by Inga Heiland while she was working at the Ifo Institute. It was completed in July 2016 and accepted as a doctoral thesis by the Department of Economics at the University of Munich. It comprises five chapters addressing one or more aspects of international trade and...

Chinese firms faced an all-around trade liberalization process during the early 2000s: lower barriers from other countries on Chinese goods, and lower Chinese barriers on other countries' goods and inputs. Using novel firm-level tariff data for trading Chinese manufacturing firms, this paper...

This paper studies the evolution of China's production and trade patterns during its integration into the global economy. We document and explain new facts concerning changes in production and exports at the industry and firm levels using microdata and a quantitative Ricardian and...

In a heterogeneous-firm model with oligopsonistic local labor markets, this paper shows that opening up to trade can affect distortion in such markets. The distortion arises because firms are large and able to exercise market power over their local workers. Using a panel dataset of Chinese...

Offshoring has gained a significant momentum in recent years. Firm size appears to be the leading factor differentiating firms that offshore from those that do not. We present a model that blends offshoring, or trade in tasks, with a Melitz-style model of monopolistic competition with...

This paper sets up a general oligopolistic equilibrium model with two countries that differ in the centralization of union wage setting. Being interested in the consequences of openness, we show that, in the short-run, trade increases welfare and employment in both locations, and it raises...

This paper investigates the impacts of progressive trade openness, technological externalities, and heterogeneity of individuals on the formation of entrepreneurship in a two-country occupation choice model. We show that trade opening gives rise to a non-monotonic process of international...

This paper analyzes how TAA for workers plays a role on intra-sectoral redistribution of labor in response to trade liberalization by placing Riordan and Staiger’s (1993) TAA model within Melitz’s (2003) framework of international trade with heterogeneous monopolistically competitive firms....