This dissertation examines three different aspects of welfare gains from international trade. The first essay shows that brand differentiation provides a new channel through which trade affects product variety and productivity within firms. This explains the conflicting effects of trade on welfare from within-firm variety and productivity gains. The second essay examines the nature of selection on firm productivity as a source of gains from trade. The third essay examines whether individual preferences based on distribution of gains from trade manifest themselves in adopted trade policies. |