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aggregate growth allows a country American free trade analysis analyze the impact applied general equilibrium Backus calculations Canada capital flows capital per worker capital-labor ratios country to import demographic differences differences in output differentiated products disaggregated dwarf the static dynamic gains dynamic increasing returns dynamic model enrollment rate equilibrium model example experience factor exports free trade agreement g(yit g(yj gains from trade growth of output growth rate Grubel-Lloyd index Haiti human capital imports of specialized increased openness allows industry investment in Mexico Kehoe Korea KPMG Peat-Marwick 1991 level of output log YJ Mexican North American free open access output per worker production function protectionist rate in Mexico rate of output rates of growth regression result of learning return on capital Romer S.I.T.C. level scale effect sector sole explanation specialization index specialized inputs Stokey Summers and Heston technological total factor productivity trade and growth U.S. Dollars Unpublished manuscript variables