Abstract

The thesis is composed of four chapters. In the first chapter it analyses the links between trade and growth. It does so using a neoclassical model with intraindustry trade. The second chapter is an econometric analysis of the growth effects of trade liberalisation. It tests the channel trade effects investment and thereby growth. The third chapter provides a model to analyse the growth effects of a custom union. It shows that it is always beneficial, in terms of growth, to join a custom union. The last chapter analyses the effects of growth on the distribution of income. It shows that, if the labour market is imperfect, growth increases the labour share of income

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