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dc.contributor.authorLong, Ngo Vanen
dc.contributor.authorRaff, Horsten
dc.contributor.authorStähler, Franken
dc.date.accessioned2009-01-28T15:00:11Z-
dc.date.available2009-01-28T15:00:11Z-
dc.date.issued2008-
dc.identifier.urihttp://hdl.handle.net/10419/17893-
dc.description.abstractThis paper examines how trade liberalization affects the innovation incentives of firms, and what this implies for industry productivity and social welfare. For this purpose we develop a reciprocal dumping model of international trade with heterogeneous firms and endogenous R&D. We identify two effects of trade liberalization on productivity: a direct effect through changes in R&D investment, and a selection effect due to inefficient firms leaving the market. We show how these effects operate in the short run when market structure is fixed, and in the long run when market structure is endogenous. Among the robust results that hold for any market structure are that trade liberalization (i) increases (decreases) aggregate R&D for low (high) trade costs; (ii) increases expected industry productivity; and (iii) raises expected social welfare if trade costs are low.en
dc.language.isoengen
dc.publisher|aKiel Institute for the World Economy (IfW) |cKielen
dc.relation.ispartofseries|aKiel Working Paper |x1430en
dc.subject.jelF12en
dc.subject.jelF15en
dc.subject.ddc330en
dc.subject.keywordinternational tradeen
dc.subject.keywordfirm heterogeneityen
dc.subject.keywordR&Den
dc.subject.keywordproductivityen
dc.subject.keywordmarket structureen
dc.subject.stwAußenhandelsliberalisierungen
dc.subject.stwInnovationen
dc.subject.stwProduktivitäten
dc.subject.stwIndustrielle Forschungen
dc.subject.stwEndogener technischer Fortschritten
dc.subject.stwWohlfahrtseffekten
dc.subject.stwTheorieen
dc.titleInnovation and Trade with Heterogeneous Firms-
dc.typeWorking Paperen
dc.identifier.ppn571523293en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen
dc.identifier.repecRePEc:zbw:ifwkwp:1430en

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