It took some time, but today I finally managed to proofread my diploma thesis in economics (which is similar to a master’s thesis) titled “Endogenous growth in heterogeneous-firm trade models.”
Abstract: This thesis aims to demonstrate how a heterogeneous-firm trade and growth model can be used to analyze productivity and welfare effects of trade liberalization. To this end, I first discuss the evolution of trade and growth theories that culminated in a class of comprehensive models capable of accounting for phenomena that are deemed important by both trade and growth theorists. Focusing on one of these models, Gustafsson and Segerstrom (2010), I extend their comparative static analysis to out-of-steady-state dynamics and show that the presence of heterogeneous firms introduces nontrivial complications absent from homogeneous-firm models. Lastly, I present Gustafsson and Segerstrom’s main finding that knowledge spillovers play a pivotal role in determining whether trade liberalization is welfare increasing.
You can download the complete thesis here (PDF, 2.1 MB).