. The preceding results hold when Northern innovation is endogenously determined; in addition, the rate of innovation …

We study a dynamic general equilibrium model where innovation takes the form of the introduction new goods, whose … production requires skilled workers. Innovation is followed by a costly process of standardization, whereby these new goods are … substitution between goods and other parameters. Third, we show that the interplay between innovation and standardization may lead …

much richer than smaller ones. New trade models share this same problematic feature: although small countries gain more … from trade than large ones, this is not strong enough to offset the underlying scale effects. In fact, new trade models … exhibit other counterfactual implications associated with scale effects – in particular, domestic trade shares and relative …

This paper studies how the effect of trade openness on economic growth depends on complementary reforms that help a … gains after trade liberalization depend on the degree of labor market flexibility. In that model, trade protection may … ameliorate the problem of underemployment (and underproduction) in sectors affected by labor market distortions; hence trade …

law are both good for economic performance, but the latter has a much stronger impact on incomes. Openness (trade/GDP) has …

] show how increased openness to international trade can lead to increased specialization in models of endogenous growth …

in the number of varieties of intermediate goods leads to positive spillovers to the final goods sector. As a result … financial markets allow the backward linkages between foreign and domestic firms to turn into FDI spillovers. Our calibration …