EconStor >
Stockholm School of Economics >
EFI - The Economic Research Institute, Stockholm School of Economics >
SSE/EFI Working Paper Series in Economics and Finance, EFI - The Economic Research Institute, Stockholm School of Economics >

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

http://hdl.handle.net/10419/56347
  
Title:Trade with R&D costs to entering foreign markets PDF Logo
Authors:Segerstrom, Paul S.
Stepanok, Ignat
Issue Date:2010
Series/Report no.:SSE/EFI Working Paper Series in Economics and Finance 727
Abstract:In this paper, we present a standard quality ladders endogenous growth model with one significant new assumption, that it takes time for firms to learn how to export. We show that this model without Melitz-type assumptions can account for all the evidence that the Melitz (2003) model was designed to explain plus much evidence that the Melitz model cannot account for. In particular, consistent with the empirical evidence, we find that trade liberalization leads to a higher exit rate of firms, that exporters charge higher prices for their products and that many large firms do not export.
Subjects:Trade liberalization
heterogeneous firms
quality ladders
endogenous growth
JEL:F12
F13
F43
O31
O41
Document Type:Working Paper
Appears in Collections:SSE/EFI Working Paper Series in Economics and Finance, EFI - The Economic Research Institute, Stockholm School of Economics

Files in This Item:
File Description SizeFormat
624009777.pdf272.25 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/56347

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