1. Introduction The benefits to developing economies of their comparatively recent integration to international capital markets are clearly substantial: access to international savings allowing the rate of investment (and thus industrial progress and income growth) to be raised; the ability to dampen exogenous shocks by borrowing abroad; and efficiency gains from the transfers of competitive te...

We develop a new model of trade in which educational institutions drive comparative advantage and determine the distribution of human capital within and across countries. Our framework exploits a multiplicity of sectors and the continuous support of human capital choices to demonstrate that freer trade can induce crowding out of the middle occupations towards the skill acquisition extremes in o...

We develop a new model of trade in which educational institutions drive comparative advantage and the distribution of human capital within and across countries. Our framework exploits a multiplicity of sectors and a continuous support of human capital choices to demonstrate that freer trade can induce crowding out of the middle occupations towards the skill acquisition extremes in one country a...