Trade Liberalisation, Process and Product Innovation, and Relative Skill Demand
AbstractThe 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 aggressively 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.
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Bibliographic InfoPaper provided by JEPS in its series JEPS Working Papers with number 06-004.
Length: 17 pages
Date of creation: Oct 2006
Date of revision:
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Web page: http://jeps.repec.org/
Intra-industry trade; process innovation; product innovation; relative skill demand; trade liberalisation;
Other versions of this item:
- Sebastian Braun, 2007. "Trade Liberalisation, Process and Product Innovation, and Relative Skill Demand," SFB 649 Discussion Papers SFB649DP2007-001, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- F15 - International Economics - - Trade - - - Economic Integration
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-11-12 (All new papers)
- NEP-INO-2006-11-12 (Innovation)
- NEP-INT-2006-11-12 (International Trade)
- NEP-MIC-2006-11-12 (Microeconomics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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