Recent models of trade with firm heterogeneity predict that opening to trade reduces the number of firms, increases the average size of firms, and decreases firms' markups. This paper uses a large dataset for 28 manufacturing industries and 46 countries to test these predictions. The econometric...

This paper uses plant level data from Chile to show that an increase in sector-wide exports decreases the survival probability of exporters, but not that of non-exporters. We argue that this result can be explained by the fact that exporters and non-exporters use factors of production in...

Recent empirical evidence documents the superior characteristics of exporters relative to non-exporters. Three explanations for this phenomenon have been proposed: self-selection; learning-by-exporting; and conscious self-selection. We test these three hypotheses using plant-level data from...