Trade Models with Heterogeneous Firms : What About Importing ?

  • Mark J. Gibson Washington State University Tim A. Graciano
  • Published 2011
__________________________________________________________________________ Intermediate goods make up a large share of world trade. Yet trade models with heterogeneous firms focus almost exclusively on firms’ export decisions rather than their import decisions. We develop an analytically solvable model of a small open economy in which heterogeneous firms… CONTINUE READING