Behrens, Kristian; Mion, Giordano; Murata, Yasusada; … - 2009
We develop a new general equilibrium model of trade with heterogeneous firms, variable demand elasticities and … endogenously determined wages. Trade integration favours wage convergence, boosts competition, and forces the least efficient firms … model is well suited to studying the impact of trade integration on aggregate productivity and factor prices. Using Canada …