Kehoe, Timothy J.; Gibson, Mark J.; Ruhl, Kim J.; … - Society for Economic Dynamics - SED - 2008
There is a lively debate about the impact of trade liberalization on economic growth measured as growth in real gross … domestic product (GDP). Most of this literature focuses on the empirical relation between trade and growth. This paper … investigates the theoretical relation between trade and growth. We show that standard models — including Ricardian models …