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New importer dynamics and the effects of trade shocks

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  • Gimenez Perales, Victor

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.

Suggested Citation

  • Gimenez Perales, Victor, 2026. "New importer dynamics and the effects of trade shocks," Kiel Working Papers 2312, Kiel Institute for the World Economy.
    • Handle: RePEc:zbw:ifwkwp:337450
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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