homogeneous firm model that is a special case of a heterogeneous firm model with a degenerate productivity distribution. Keeping … all structural parameters besides the productivity distribution the same, we show that the two models have different … quantitatively important (up to a few percentage points of GDP). Under the assumption of a Pareto productivity distribution, the two …

neoclassical theories, the results show that even a small difference in the ex-ante productivity distribution between North and …

elasticity and multiple asymmetric regions, in which trade integration induces wage and productivity changes. Using Canada … productivity. Given the estimated parameter values, we first decompose border effects into a pure border effect, relative and … Canada-US border on regional market aggregates such as wages, productivity, markups, the mass of varieties produced and …

and closure of low productivity firms combined with internal growth of more efficient firms. …

markets. This approach explains a variety of features exhibited in disaggregated trade data, including the higher productivity … industry and firm productivity. …

, simulate the trade liberalization, and compute the resulting growth rates of Canadian industry productivity, exports and … have smaller productivity enhancing effects than Canadian tariff reductions due to the entry of less efficient exporters …. Quantitatively, the model tends to underpredict the impact of CUSFTA on growth rates of productivity, but overpredicts the increase …