Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/25173
Authors: 
Braun, Sebastian
Year of Publication: 
2007
Series/Report no.: 
SFB 649 discussion paper 2007,001
Abstract: 
The interaction between trade liberalisation, product and process innovation, and relative skill demand is analysed in a model of international oligopoly. Lower trading barriers increase the degree of foreign competition. The competing enterprises respond by investing more aggres- sively in lowering marginal costs of production. Moreover, firms reduce the substitutability of their products through additional investment in product innovation. The paper also shows that the relative demand for skilled workers may increase as a result.
Subjects: 
Intra-industry Trade
Process Innovation
Product Innovation
Relative Skill Demand
Trade Liberalisation
JEL: 
F12
F15
F16
O32
Document Type: 
Working Paper

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