Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/337450 
Year of Publication: 
2026
Series/Report no.: 
Kiel Working Paper No. 2312
Publisher: 
Kiel Institute for the World Economy, Kiel
Abstract: 
New importers increase their conditional survival rate and import share over time. However, a model of multi-input firms with an import entry cost and stochastic import costs cannot replicate these dynamics. I show that an extended model can be reconciled with the data. I calibrate both models and use them to identify the effects of trade shocks. The simulations show that a decrease in import prices with the new importer dynamics generates lower productivity gains, but these gains are more widespread across firms.
Subjects: 
importer dynamics
trade shocks
gains from trade
JEL: 
F12
F13
L11
Document Type: 
Working Paper

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