Does trade improve institutions and contribute to long run growth? I develop a theory of trade, in which trade …

leads to an increase in average income, economic theory is ambiguous about the possible effects on the long-run growth rate …

in total factor productivity (TFP), but the sources of TFP differences are not well understood. This paper considers the … parameterization, my model shows that conventional TFP measures overestimate fundamental productivity differences by 30%. I then show …

We estimate the relationship between productivity and trade for a panel of countries over the period 1980 to 2000 using … instrumental-variables estimation of a productivity equation. We note that some estimates of productivity gains attributed to trade … productivity. The trade instrument is based on a "theoretically motivated' gravity equation. The instruments for institutional …

incentives and the world distribution of income. An endogenous product cycle arises in equilibrium, in which innovative countries …

leads to a stable world income distribution. This is because specialization and trade introduce de facto diminishing returns … cross-sectional behavior of the world economy is similar to that of existing exogenous growth models: Cross … exhibit conditional convergence as in the Solow-Ramsey model. The dispersion of the world income distribution is determined by …