Dekle, Robert; Eaton, Jonathan; Kortum, Samuel - 2007
current accounts balance. The U.S. manufacturing trade deficit with China falls to $65 billion from its 2004 level of $167 …We incorporate trade imbalances into a quantitative model of bilateral trade in manufactures, dividing the world into … forty countries. Fitting the model to 2004 data on GDP and bilateral trade we calculate how relative wages, real wages, and …