NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Market Penetration Costs and the New Consumers Margin in International Trade

Costas Arkolakis

NBER Working Paper No. 14214
Issued in August 2008

---- Acknowledgements -----

I am grateful to my advisors Timothy Kehoe and Samuel Kortum for their continued guidance and their support. I am also grateful to Cristina Arellano and Jonathan Eaton for continuous encouragement and various discussions on the topic. I am indebted to Jonathan Eaton, Samuel Kortum and Francis Kramarz for providing me with statistics from their data. For their suggestions and comments, I also would to like to thank George Alessandria, Marios Angeletos, Ariel Burstein, Thomas Chaney, V.V. Chari, John Dalton, Thomas Holmes, Christos Ioannou, Patrick Kehoe, Erzo G.J. Luttmer, Ellen McGrattan, Marc Melitz, Fabrizio Perri, Edward C. Prescott, James Schmitz, Robert Shimer, Ina Simonovska, Farid Toubal as well as various workshop and seminar participants. Financial support from the Heller Dissertation Fellowship is gratefully acknowledged. All remaining errors are mine. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.

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