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This paper presents a trade model with capital and labor as factors of production. The main contribution of this paper is that it considers a new type of firm heterogeneity, which is empirically relevant: firms in this paper differ with respect to their factor shares in production. Therefore,...
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goods trade. This paper contributes to the discussion about the trade in intermediate goods and productivity by revisiting … business cycles and productivity and welfare at the current stage of Korean development. The major revision of the Basu (1995 … investigate the effects of misallocation and multiplier effects due to intermediate goods on industrial productivity and …
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We study the world trading equilibrium in a Ricardian model where factors of production are themselves produced and tradable rather than endowed and non-tradable, corresponding to the three-quarters of international trade that is in intermediate and capital goods. We show that trade affects...
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