Melitz, Marc J; Redding, Stephen J. - C.E.P.R. Discussion Papers - 2014
sequential production, in which trade induces a reorganization of production that raises domestic productivity, we show that the …The theoretical result that there are welfare gains from trade is a central tenet of international economics. In a … class of trade models that satisfy a "gravity equation", the welfare gains from trade can be computed using only the open …