Even though differences in sectoral total factor productivity are at the heart of Ricardian trade theory and many models of growth and development, very little is known about their size and their form. In this paper we try to fill this gap by using a Hybrid-Ricardo-Heckscher-Ohlin trade model...

In this article, we aim at highlighting the benefits of international trade on economic growth and development. In the first part of the paper, we will outline the seminal theories in the doctrine of international trade. In the second part, we will focus on current developments in the exports...

We examine the implications of workhorse trade models for how aggregate productivity, real GDP and real consumption, as measured by statistical agencies, respond to changes in trade costs. In a range of models, changes in measured productivity are equal to the inverse of an export-share weighted...

We study the relationship between geography and growth. To do so, we first develop a dynamic spatial growth theory with realistic geography. We characterize the model and its balanced growth path and propose a methodology to analyze equilibria with different levels of migration frictions. We...

This paper presents empirical evidence from a cross-section sample of thirty six Sub-Saharan African countries and time-series sample of selected seven. The evidence suggests that countries in the region that open generally tend to grow faster than those that are closed. However, the...

We extend the dynamic Heckscher-Ohlin model in Bond et al. (2009) and show that if the labor intensive good is inferior, then there may exist multiple steady states in autarky and poverty trap can arise. Poverty traps for the world economy, in the form of Pareto dominated steady states, are also...

In the context of a two-sector overlapping-generations model it is demonstrated that a steady-state transfer paradox may arise under commodity trade with stability and without distortions or bystanders. The existence of the paradox is due to the effect of the transfer on world capital...

We develop and calibrate a model where differences in factor endowments lead countries to trade intermediate goods, and gains from trade reflect in total factor productivity. We perform several output and growth decompositions, to assess the impact that barriers to trade, as well as changes in...

El artículo examina los fundamentos del Plan Nacional de Desarrollo y esbozalos elementos básicos del concepto de Estado comunitario. Además, sedemuestra que de los cuatro objetivos expuestos en el Plan, el más importantees el de brindar seguridad democrática ya que no sólo permite...

This work shows the asymmetric effect of the reduction in transportation costs across different sectors in the process of the Great Divergence. Specifically, the analysis indicates that reductions in transportation costs of industrial goods enhance convergence of the growth rates of trading...