Alvarez, Fernando E.; Buera, Francisco J.; Robert E. … - National Bureau of Economic Research (NBER) - 2013
economies, and where freer trade has persistent, positive effects on productivity, beyond the standard efficiency gains due to … reallocation effects. We add to a standard Ricardian model a theory of endogenous growth where the engine of growth is the flow of …. We find that exclusion of a country from trade reduces productivity growth, with large long-term effects. Smaller trade …