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• W2157285314 abstract "We revisit the classical question on economic integration and income convergence in a two-sector OLG model with nancial frictions and sectoral heterogeneity in minimum investment requirements (MIR, hereafter). The extensive margin of investment is a critical channel through which aggregate income may become a determinant of comparative advantage. Free trade allows the rich (poor) countries to specialize partially or completely in the high-MIR (low-MIR) sector which has a high (low) return endogenously. The specialization eect interacts with the neo" @default.
• W2157285314 created "2016-06-24" @default.
• W2157285314 creator A5028930572 @default.
• W2157285314 date "2014-01-01" @default.
• W2157285314 modified "2023-09-26" @default.
• W2157285314 title "Trade and Financial Integration, Extensive Margin, and Income Divergence" @default.
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• W2157285314 hasPublicationYear "2014" @default.
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