Publication

This paper develops two extensions of the dynamic model presented in Melitz (2003). The first extension consists in the introduction of technology choice between three alternative production technologies: L, M and H. The second extension consists in the introduction of two different exporting profiles: “Low-Commitment Exporters” –who make the minimum possible investment required to penetrate export markets- and “High-Commitment Exporters” –who are ready to make additional trade-related investments in order to gain additional export sales-.