Most trade models today are specializations of, or variations on, the general-equilibrium model of Arrow-Debreu-McKenzie, where no one's action is conditioned on others' previous action. Although that model does not deal with free riding, trade literature has achieved much for a world under...

This paper outlines the conditions under which trade is beneficial for a developing country's growth. A developing country suffers from two disadvantages: low income and a comparative disadvantage in the production of modern manufactured goods-goods which allow a high rate of human capital...