Tariffs and other policy distortions typically lower real national income relative to what it otherwise would have been for any given rate of factor accumulation. Even while lowering real income, however, policy distortions may raise an economy`s real measured growth rate and so, somewhat...

How does trade liberalization impact productivity at the micro level in the economy? Using a panel data of Indian manufacturing plants for the period 1998-99 to 2007-08 this study examines the mechanisms through which trade impacts productivity growth at the production level in the economy....

We develop a tractable dynamic model of productivity growth and technology spillovers that is consistent with the emergence of real world empirical productivity distributions. Firms can improve productivity by engaging in in-house R\&D, or alternatively, by trying to imitate other firms'...