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Firm Heterogeneity, Variable Markups, and Multinational Production: A Review from Trade Policy Perspective

Ziran Ding

No 92, Bank of Lithuania Working Paper Series from Bank of Lithuania

Abstract: This paper surveys the main ingredients and results of heterogeneous firms trade policy literature that has been developing since the early 2000s. First, I present the stylized facts regarding firm heterogeneity, firmlevel markups, and multinational production’s global structure. I then survey the trade policy papers that build on the workhorse model of firm heterogeneity. Third, I summarize the recent development of theoretical approaches of modeling the firm-level markups and its trade policy implication. Fourth, I discuss the theoretical frameworks that incorporate multinational production into heterogeneous firms’ framework and their trade policy implication. Finally, I discuss directions for future research and offer suggestions for further readings.

Keywords: Trade policy; Firm heterogeneity; Variable markups; Multinational production. (search for similar items in EconPapers)
JEL-codes: F12 F13 F23 F60 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2021-07-30
New Economics Papers: this item is included in nep-int
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Citations: View citations in EconPapers (2) Track citations by RSS feed

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Journal Article: Firm heterogeneity, variable markups, and multinational production: A review from trade policy perspective (2022) Downloads
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