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dc.contributor.authorTeteryatnikova, Mariyaen_US
dc.date.accessioned2009-02-25en_US
dc.date.accessioned2009-07-29T13:30:37Z-
dc.date.available2009-07-29T13:30:37Z-
dc.date.issued2008en_US
dc.identifier.urihttp://hdl.handle.net/10419/26730-
dc.description.abstractThis paper argues that different types of trade liberalization { multilateral versus regional { may lead to different R&D and productivity levels of firms. Trade agreements between countries are modelled with a network: nodes represent countries and a link between the nodes indicates the existence of a trade agreement. In this framework, the multilateral trade agreement is represented by the complete network while the overlap of regional trade agreements is represented by the hub-and-spoke trade system. Trade liberalization, which increases the network of trade agreements, reinforces the incentives for firms to invest in R&D through the creation of new markets (scale effect) but it may also dampen these incentives through the emergence of new competitors (competition effect). The joint action of these two effects within the multilateral and the regional trade systems gives rise to the result that, for the same number of direct trade partners, the R&D effort of a country in the multilateral agreement is lower than the R&D effort of a hub but higher than the R&D effort of a spoke. This suggests that a core” country within the regional trade system has higher R&D and productivity level than a country with the same number of trade agreements within the multilateral system whereas the opposite is true for a periphery” country. Additionally, the paper finds that while multilateral trade liberalization boosts productivity of all countries, regional trade liberalization increases productivity of core economies but may decrease productivity of periphery economies if the level of competition in the new trade partner countries of the periphery economy is too high”. Furthermore, the aggregate level of R&D activities within the multilateral trade agreement exceeds that in the star { the simplest representative of the hub-and-spoke trade system.en_US
dc.language.isoengen_US
dc.publisherWorld Trade Organization, Economic Research and Statistics Div. Genevaen_US
dc.relation.ispartofseriesWTO Staff Working Paper ERSD-2009-03en_US
dc.subject.jelO31en_US
dc.subject.jelD85en_US
dc.subject.jelD43en_US
dc.subject.jelF13en_US
dc.subject.ddc330en_US
dc.subject.keywordTradeen_US
dc.subject.keywordmultilateralismen_US
dc.subject.keywordregionalismen_US
dc.subject.keywordR&Den_US
dc.subject.keywordnetworken_US
dc.subject.keywordoligopolistic competitionen_US
dc.subject.stwAußenwirtschaften_US
dc.subject.stwAußenhandelsliberalisierungen_US
dc.subject.stwHandelsabkommenen_US
dc.subject.stwInternationale Wirtschaftsbeziehungenen_US
dc.subject.stwHandelsregionalismusen_US
dc.subject.stwForschungen_US
dc.titleR&D in the network of international trade: multilateral versus regional trade agreementsen_US
dc.typeWorking Paperen_US
dc.identifier.ppn592489981en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:WTO Staff Working Papers, Economic Research and Statistics Division, WTO

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