Álvarez Albelo, CarmenManresa, Antonio, 1954-Pigem-Vigo, Mònica2019-07-022020-09-302018-090036-9292https://hdl.handle.net/2445/136258We show that pure Ricardian trade can account for the empirical evidence that domestic growth is more affected by foreign growth than by trade openness. To do this, we develop a two‐country model involving a backward economy that exchanges intermediate goods with a faster growing country. We obtain three main results regarding growth and welfare of the backward economy: (i) the growth‐enhancing comparative advantage is facilitated by faster foreign growth; (ii) the growth rate may be negatively affected or unaffected by a domestic tariff, while it is always positively impacted by foreign growth; and (iii) a domestic tariff could be welfare‐improving.23 p.application/pdfeng(c) Scottish Economic Society, 2018Comerç exteriorCreixement econòmicForeign tradeEconomic growthinfo:eu-repo/semantics/article6819922019-07-02info:eu-repo/semantics/openAccess