Innovation and trade with heterogeneous firms

• 成果类型: Article
• 署名作者: Ngo Van Long; Raff, Horst; Staehler, Frank
• 署名单位: University of Wurzburg; Leibniz Association; Ifo Institut; McGill University; University of Kiel
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2011.03.008
• 发表日期: 2011
• 页码: 149-159
• 关键词: International trade; firm heterogeneity; R&D; PRODUCTIVITY; market structure

摘要

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. (c) 2011 Elsevier B.V. All rights reserved.