improve the business conditions in one country have negative productivity and welfare effects on the trading partner. Second …

improve the business conditions in one country have negative productivity and welfare effects on the trading partner. Second …

"There is a growing literature that investigates the effect of trade liberalization on productivity. Nearly all such … studies assume that trade policy is determined independently of productivity, hence it is exogenous. The author shows that … the positive effect of liberalization on productivity when they do not account for the endogeneity bias. On the theory …