In the past decade, contributors to the endogenous growth literature have identified a variety of ways that trade … trade policy, by influencing the mix of production, can affect long run growth rates. Despite its appeal, the Lucas …/Krugman/Stokey/Young (hereafter LKSY) view remains largely untested. To distinguish it convincingly from other theories that relate trade to growth …

We develop a procedure to estimate production functions, elasticities of demand, and productivity when firms …