. Theory translates into an intuitive econometric system that identifies the causal impact of trade on income and growth, and …We build and estimate a structural dynamic general equilibrium model of growth and trade. Trade affects growth through …, growth affects trade, directly through changes in country size and indirectly through altering the incidence of trade costs …

prices on growth. In the short run, growth is hampered by increasing energy prices. In the long run, however, capital … inputs where growth increases with rising energy prices. In the empirical part, estimations using di¤erent channels and …, they can even be positive for growth. …