in foreign trade. The importance of LBD on export performance is accounted for at various
levels of aggregation, such as LBD at the product level, LBD at the market level, and more
specifically, LBD at the market-and-product level. Using panel data covering 130 countries
and 1,003 products during the period between 1962 and 2000, this paper finds a positive but
concave relationship between foreign trade and LBD at various export levels, even after
controlling for country income effects, openness, and per-capita GDP growth rates. Such
relationship is stronger and less bounded at the product-specific level. However, with more
meaningful changes, LBD at the market-specific level becomes more important than that at
the product-specific level over a longer period of time.