@article {154856,
	title = {The Margins of Global Sourcing: Theory and Evidence from U.S. Firms},
	journal = {American Economic Review},
	volume = {107},
	number = {9},
	year = {2017},
	month = {2017},
	pages = {2514-64},
	abstract = {We develop a quantifiable multi-country sourcing model in which firms self-select into importing based on their productivity and country-specific variables. \&nbsp;In contrast to canonical export models where firm profits are additively separable across destination markets, global sourcing decisions naturally interact through the firm{\textquoteright}s cost function. \&nbsp;We show that, under an empirically relevant condition, selection into importing exhibits complementarities across source markets. \&nbsp;We exploit these complementarities to solve the firm{\textquoteright}s problem and estimate the model. Comparing counterfactual predictions to reduced-form evidence highlights the importance of interdependencies in firms{\textquoteright} sourcing decisions across markets, which generate heterogeneous domestic sourcing responses to trade shocks.},
	author = {Pol Antr{\`a}s and Teresa C. Fort and Felix Tintelnot}
}
