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This paper investigates the impact of international trade on input market distortions. We focus on a specific friction, binding borrowing constraints in capital markets. We propose a theoretical model where a firm's demand for capital is constrained by an initial asset allocation and past sales....
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This paper evaluates the global welfare impact of China's trade integration and technological change in a quantitative … "balanced" one in which China's productivity grows at the same rate in each sector, and an "unbalanced" one in which China … magnitude larger welfare gains when China's productivity growth is biased towards its comparative disadvantage sectors. We …
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