This paper examines the effects of international trade in agricultural goods on structural transformation and economic growth. To do the analysis, I introduce international trade into a neoclassical growth model with two sectors, agriculture and non agriculture. A key feature of the model is the...

We study how financial frictions affect firm-level heterogeneity and trade. We build a model where productivity differences across monopolistically competitive firms are endogenous and depend on investment decisions at the entry stage. By increasing entry costs, financial frictions lower the...