Article ID Journal Published Year Pages File Type
962623 Journal of International Economics 2012 15 Pages PDF
Abstract
► This paper models two dimensions of firm heterogeneity, productivity and demand shocks. ► Various trade policies faced by Bangladeshi garment exporters to the US and EU are incorporated. ► Predictions about how firms sort themselves across markets in response to differences in trade policies are made. ► These predictions are tested non-parametrically and shown to be supported empirically. ► Preferences provided by developed countries may not be as liberal as they seem due to strict rules of origin.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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