Innovation and trade with heterogeneous firms

A-Tier
Journal: Journal of International Economics
Year: 2011
Volume: 84
Issue: 2
Pages: 149-159

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper examines how trade liberalization affects the innovation incentives of firms, and what this implies for industry productivity. For this purpose we develop a reciprocal dumping model of international trade with heterogeneous firms and endogenous R&D. Among the robust results that hold both in the short run when there is no entry, and in the long run under free entry are that trade liberalization increases aggregate R&D when trade costs are low and decreases R&D when trade costs are high. Expected industry productivity rises as trade costs fall.

Technical Details

RePEc Handle
repec:eee:inecon:v:84:y:2011:i:2:p:149-159
Journal Field
International
Author Count
3
Added to Database
2026-01-25