The paper develops a model of proportionate growth to describe the dynamics of the network of international trade flows. We show that a large number of the empirical regularities characterizing international trade - such as the fraction of zero trade flows across pairs of countries, the positive...

This paper examines the cross-country income and welfare consequences of trade-induced human capital (dis-)accumulation. The model is based on heterogeneous workers who make educational decisions in the presence of complete markets. When such heterogeneous workers invest in schooling, high type...