Ferreira, Pedro Cavalcanti; Trejos, Alberto - FGV/EPGE Escola Brasileira de Economia e Finanças, … - 2010
We develop and calibrate a model where di¤erences in factor en- dowments lead countries to trade di¤erent goods, so that the existence of international trade changes the sectorial composition of output from one country to another. Gains from trade re ect in total factor produc- tivity. We...