Large firms play a pivotal role in international trade. We develop a multisector granular
model of trade where sectors host a finite number of firms. Both aggregate and granular firm …

We show that heterogeneous firms choose different locations in response to market
integration. Specifically, decreasing trade costs lead to the gradual agglomeration of efficient …

The focus of the literature surrounding trade liberalization has recently shifted from trade
liberalization in imported final goods to studying the effects of trade liberalization in imported …

This paper shows the equivalence of spatial inequalities in industrial location and in income
by revisiting the home market effect (HME) without any homogeneous good based on a …

This paper introduces an environmental externality and factor-biased technology adoption
into a trade model with heterogeneous firms. This study explores how firms' decisions of …

We propose a sufficient statistics approach to measuring Ricardian comparative advantage
based on a quantitative trade model simultaneously featuring cross-country differences in …

This paper studies the impact of trade cost reductions on the geographical concentration of
manufacturing in the presence of intermediate input linkages, firm heterogeneity and fixed …

There is increasing empirical evidence that vertical product differentiation is an important
determinant of international trade. However, the economic literature so far has solely …

This paper develops and empirically examines a model of relative productivity differences
both within and across industries for small open economies. We decompose the effect of …

An empirical finding by Trefler (2004,“The Long and Short of the Canada-US Free Trade
Agreement”, American Economic Review, 94 (4), 870-895) and others that industrial …