Aggregate production functions are a standard feature of the trade theorist's toolbox. While this modeling device has generated some fundamental insights, it presents one obvious shortcoming: it necessarily ignores any effect that the distribution of factor endowments across agents may have on international trade flows. This paper develops a general fraemwork that can shed light on these effects and discusses several applications.
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Pol Antràs & Luis Garicano & Esteban Rossi-Hansberg, 2005.
"Offshoring in a Knowledge Economy,"
NBER Working Papers
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Helpman, Elhanan & Melitz, Marc J & Yeaple, Stephen R, 2003.
"Export versus FDI,"
CEPR Discussion Papers
3741, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted)
Other versions:
Elhanan Helpman & Marc J. Melitz & Stephen R. Yeaple, 2003.
"Export versus FDI,"
NBER Working Papers
9439, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Pol Antràs & Elhanan Helpman, 2003.
"Global Sourcing,"
NBER Working Papers
10082, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)