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

barriers to trade. But a backlash against this view now suggests that trade policies have little or no impact on growth. If …" (Easterly 2005, Rodrik 2006). However, the empirical basis for judging recent trade reforms is weak. Econometrics are mostly ad … hoc; results are typically not judged against models; trade policies are poorly measured (or not measured at all, as when …

This paper quantifies the gains from openness arising from trade and multinational production (MP). We present a model … that captures key dimensions of the interaction between these two flows: Trade and MP are competing ways to serve a foreign … part of their output. The calibrated model implies that the gains from trade can be twice as high as the gains calculated …

Many studies have found a positive correlation between trade and growth, but do not attempt to identify the economic … mechanisms involved. This paper attempts to identify one of the mechanisms linking trade and growth. In particular, we present a … novel theoretical model that establishes a link between trade liberalization and investment-led growth. Estimating equations …

This paper integrates in a unified and tractable framework some of the key insights of the field of international trade … preferences but differ on their assumptions about trade frictions. By comparing the predictions of these models against each other …, it is possible to identify a variety of channels through which trade affects the evolution of world income and its …

Many previous studies of the role of trade during the British Industrial Revolution have found little or no role for … trade in explaining British living standards or growth rates. We construct a three-region model of the world in which … that while trade had only a small impact on British welfare in the 1760s, it had a very large impact in the 1850s. This …

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 …