We study the importance of international trade in structural change. Our framework has both productivity and trade cost shocks, and allows for non-unitary income and substitution elasticities. We calibrate our model to investigate South Korea's structural change between 1971 and 2005. We find...

Recommended readings (Machine generated): 1. Piyabha Kongsamut, Sergio Rebelo and Danyang Xie (2001), 'Beyond Balanced Growth', Review of Economic Studies, 68 (4), October, 869-82 -- 2. Reto Foellmi and Josef Zweimüller (2008), 'Structural Change, Engle's Consumption Cycles and Kaldor's Facts...