We discuss the pros and cons of the liberalization of international capital flows and international trade in goods and services, with special reference to India. We look at both the theoretical and empirical literature studying the impact of capital flows and trade in goods on real incomes, growth and productivity growth. Both macroand micro-level evidence is surveyed. We also review country-sp...

This paper analyzes to what extent labor market frictions limit the gains from market integration. I use an external demand shock to the Spanish economy as a natural experiment to identify and quantify the effect of labor mobility costs on Spain’s development. Using newly digitized trade and labor market data, I show that during WWI (1914-1918) a large, temporary and sectorally heterogeneous de...