Working Paper: CEPR ID: DP5059
Authors: Jaume Ventura
Abstract: This paper integrates in a unified and tractable framework some of the key insights of the field of international trade and economic growth. It examines a sequence of theoretical models that share a common description of technology and preferences but differ on their assumptions about trade frictions. By comparing the predictions of these models against each other, it is possible to identify a variety of channels through which trade affects the evolution of world income and its geographical distribution. By comparing the predictions of these models against the data, it is also possible to construct coherent explanations of income differences and long-run trends in economic growth.
Keywords: economic growth; globalization; international trade
JEL Codes: F10; F15; F40; F43; O11; O40; O41
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| trade (F19) | economic growth (O49) |
| trade (F19) | productivity (O49) |
| trade (F19) | specialization (Z00) |
| trade (F19) | factor allocation (D33) |
| economic growth (O49) | world income (F40) |
| trade barriers (F14) | trade (F19) |
| integration into global economy (F69) | economic growth (O49) |
| gains from trade (F11) | productivity (O49) |