NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

A Unified Theory of Firm Selection and Growth

Costas Arkolakis

NBER Working Paper No. 17553
Issued in October 2011

---- Acknowledgements -----

I am grateful to Timothy Kehoe, Samuel Kortum, Cristina Arellano, Jonathan Eaton as well as Giuseppe Moscarini for their insightful comments and discussions on the topic. I am also indebted to Marc Muendler for providing me with moments from the Brazilian data and Jose Mata for providing me with the estimates for Portuguese firms. For their suggestions and comments, I would also like to thank Evangelia Chalioti, Fabian Lange, Erzo G.J. Luttmer, Anastasios Magdalinos, Ellen McGrattan, Luca Opromolla, Theodore Papageorgiou, Steve Redding, Andres Rodriguez-Clare, Larry Samuelson, Peter Schott, Adam Slawski, the members of the Trade workshop at Yale University and the Trade and Development workshop at the University of Minnesota, as well as various seminar and conference participants. Treb Allen and Olga Timoshenko provided outstanding research assistance. I gratefully acknowledge the support of the National Science Foundation under grant SES-0921673 and the CESifo foundation for the CESifo Young Affiliate Prize. All remaining errors are mine. This paper previously circulated under the title "Market Penetration Costs and Trade Dynamics" The views expressed herein are those of the author and do not necessarily reflect the views of the National Bureau of Economic Research.

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