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...

I study knowledge spillovers, positive externalities that augment the information set of an economic agent, and reviews the evidence on such spillovers in the context of international economic transactions. Even though spillovers are by their very nature difficult to identify, over recent...