We propose a new channel through which exchange rates affect trade. Exploiting the heterogeneity in firms' foreign … switching channel. Pricing exports in the dominant vs. producer currency mutes the effect of DCF on trade. …

also provide a novel explanation for why horizontal multinational activity may increase when trade costs fall - a result … that is at odds with the proximity-concentration trade-off. …

increase the volatility of total sales for exporting firms. …

This paper documents the importance of consumer taste in trade flows using Belgian firm-product customs data by … parameters using a very flexible demand specification. Consumer taste is identified for every trade ow. The results show that …

standard, two-country model of trade in which firms are heterogeneous in terms of the demand they face in each market. We show …

products with intermediate productivity. Shocks to trade costs and technology affect the endogenous decision to export or …

connect the theory of trade with heterogeneous firms to the real-world empirical evidence that motivated the development of …

than 100,000 Chinese exporters over the 2000-2006 period. We confirm a trade-deterring effect of RER volatility. We find …This paper studies how firm-level export performance is affected by Real Exchange Rate (RER) volatility and … volatility and that this effect is magnified for financially vulnerable firms. As expected, financial development seems to dampen …