Demidova, Svetlana; Rodríguez-Clare, Andrés - In: Journal of International Economics 78 (2009) 1, pp. 100-112
We explore the effect of trade policy on productivity and welfare in the now standard model of firm-level heterogeneity and product differentiation with monopolistic competition. To obtain sharp results, we restrict attention to an economy that takes as given the price of imports and the demand...