Melitz and Ottaviano’s (2008) firm heterogeneity model predicts that trade liberalization induces a selection process from low to high productivity firms, that translates into an industry productivity growth. A similar firms’ selection effect is induced by market size. These predictions are...

This paper analyzes the extent to which the reduction of import tariffs – as a measure of import competition – affects the rate of quality upgrading in the agri-food sector. This relation is studied using highly disaggregated EU-15 import data from more than 70 countries in thousands of food...