The Simple Analytics of the Melitz Model in a Small Open Economy
---- Acknowledgements ----
We thank Arnaud Costinot and Kala Krishna for helpful comments. We also would like to thank Robert Staiger and two anonymous referees for very useful comments and suggestions. All remaining errors are our own. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. Demidova gratefully acknowledges financial support from the Social Sciences and Humanities Research Council of Canada.