Finicelli, Andrea; Pagano, Patrizio; Sbracia, Massimo - In: Journal of International Economics 89 (2013) 1, pp. 96-109
We analyze the foundations of the relationship between trade and average productivity in the Ricardian model. Under broad assumptions about the autarky distributions of industry productivities, trade openness raises average productivity. This is due to the selection effect of international...