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The purpose of this paper is to evaluate the role of trade in productivity growth in a sample of 30 sectors in 25 EU … hour worked in these countries appear to be mainly due to positive developments (rising productivity) within single … industries and only to a lower extent result from a shift towards higher productivity activities. Trade is found to be an …
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We study the gains from trade in a model with endogenously variable markups. We show that the pro-competitive gains from trade are large if the economy is characterized by (i) extensive misallocation, i.e., large inefficiencies associated with markups, and (ii) a weak pattern of cross-country...
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