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Nowhere has the divide between advocates and critics of globalization been more striking than in debates over free trade and the environment. And yet the literature on the subject is high on rhetoric and low on results. This book is the first to systematically investigate the subject using both...
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transformation. The standard trade theory postulates that trade openness contributes to poverty alleviation directly by changing … the trade-to-grossdomestic-product ratio to measure openness often fail to find a direct effect of openness on poverty over … and above the growth-poverty nexus. This paper is motivated by the concern that the failure of these studies to detect the …
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1. I develop a two-city model to explain a new stylized fact: high-income cities specialize in income-elastic sectors. The model has heterogeneous income elasticities and mobile agents, and either heterogeneous fundamental productivities or heterogeneous amenities generate the specialization...
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