Trade and innovation cause structural change. Productive factors must flow from declining to growing industries. Banks … advantage and trade, and can magnify the gains from trade liberalization. The analysis shows how insolvency laws, minimum … capital standards, and cost of bank equity determine credit reallocation, sectoral expansion and trade patterns. …

recycling firms to compensate for the savings in disposal costs. We study trade between resource poor economies exporting final … goods, and resource rich countries exporting raw materials. We find rich welfare effects of trade policy with non …-trivial interactions between terms of trade effects and distortions in recycling and resource extraction. …

process thus fosters firm creation and improves aggregate productivity. It also complements policies that stimulate firm entry …