EconStor >
Institut für Weltwirtschaft (IfW), Kiel >
Kieler Arbeitspapiere, IfW >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/30265
  
Title:Technology choice and international trade PDF Logo
Authors:Schmidt, Gabriela
Issue Date:2010
Series/Report no.:Kiel working paper 1600
Abstract:This paper develops two extensions of the dynamic model presented in Melitz (2003). The first extension consists in the introduction of technology choice between three alternative production technologies: L, M and H. L is assumed to be the same as Melitz's single production technology, while M and H are assumed to be superior production technologies, stemming this superiority from the fact these technologies substitute the more primitive capital goods used in technology L with newer, updated versions which embody technological advances, and also from the fact that M and H are more skill-intensive than L. Technologies M and H are equally skill-intensive, but H still is superior to M because it incorporates world-technology-frontier capital goods, while the capital goods used in M are below such frontier. The second extension consists in the introduction of two different exporting profiles: 'Low-Commitment Exporters' - who make the minimum possible investment required to penetrate export markets- and 'High-Commitment Exporters' - who are ready to make additional trade-related investments in order to gain additional export sales.
Subjects:Technology choice
heterogeneous firms
export profiles
embodied technology
resources' redistribution
monopolistic competition
JEL:O14
O33
Document Type:Working Paper
Appears in Collections:Publikationen von Forscherinnen und Forschern des IfW
Kieler Arbeitspapiere, IfW

Files in This Item:
File Description SizeFormat
620679239.pdf590.6 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/30265

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.