frictions in production and distribution of a many country world. The starting point is the international incidence of … reduce sectoral skill premia. Bigger sellers' incidence by country (sector) reduces equilibrium shares of world (national …

advantage. Financial globalization then induces more specialization and more trade. The present framework yields explicit closed … industrial specialization and low international trade. As international portfolio diversification is limited and productivity is …-form solutions for the volume and the structure of trade. Empirical results support the implications of the theory. Trade in …