Behrens, Kristian; Mion, Giordano; Murata, Yasusada; … - 2009
to leave the market, thereby affecting aggregate productivity. Since wage and productivity responses are endogenous, our … model is well suited to studying the impact of trade integration on aggregate productivity and factor prices. Using Canada …-US interregional trade data, we first estimate a system of theory-based gravity equations under the general equilibrium constraints …