Working Papers

Growth and Trade: The North Can Lose

CODE: WP-334
AUTHOR(s): Spilimbergo, Antonio
PUBLISHED: January 1997


Models on the composition of trade and growth often assume that the technological content of trade is negatively correlated with the income of the trading partner. First, this paper shows that this assumption is not supported empirically. Second, it presents a Ricardian model with non-homothetic preferences.

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