This paper develops a two-country, two-sector model of trade where the only difference between two countries is the cost of human capital formation. It is shown that this difference completely shapes the pattern of trade. Trade, in turn, affects the distribution of human capital both at...

This paper develops a monopolistic competition model with heterogeneous firms to study the interaction between technology adoption and trade in a world of two countries facing different technology adoption costs. It shows that a reduction in the technology adoption cost in one country increases...

This paper develops a fully-endogenous, variety-expansion growth model with firm- specifc quality heterogeneity, limit pricing, and an endogenous distribution of markups. Trade induces only firms with high-quality products to export, whereas firms with low- quality products serve only the...

This paper develops a trade model with firm-specifc quality heterogeneity, limit pricing, and an endogenous distribution of markups. Exposure to trade induces only the firms producing high-quality (high-price) products to enter the export markets, whereas firms producing low-quality (low-price)...

This paper considers a world of two symmetric countries with two factors and two sectors. Outputs of the two sectors are imperfect substitutes and sectors differ in relative factor inten- sity. Each sector contains a continuum of heterogenous firms that produce differentiated goods within their...

This paper considers a world of two symmetric countries with two factors and two sectors. Outputs of the two sectors are imperfect substitutes and sectors differ in relative factor inten- sity. Each sector contains a continuum of heterogenous firms that produce differentiated goods within their...

I investigate the long-run implications of trade and technology di®usion through trade, when ¯rms are heterogeneous and trade is costly. The paper integrates ¯rm heterogeneity and trade into product innovation growth models from endogenous growth theory. Two speci¯ca- tions of the R&D...

We use a recently developed non-parametric approach to analyze the variation in labor productivity growth across China's provinces. This approach imposes less structure on the data than the standard growth accounting framework and allows for a breakdown of labor productivity into capital...

In this paper, using a production framework in which skilled and unskilled labor are imperfect substitutes, we analyze the time paths of the efficiencies of skilled and unskilled labor and their implications for wage inequality and economic growth. We find no evidence that supports the common...

This paper investigates the significance of Research and Development (R&D) spillovers through intra- and international trade in intermediate goods for productivity growth in a panel of OECD industries during 1973-1994. In the model, four different sources of R&D are identified: R&D conducted in...