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Trade and Dynamic Efficiency


  • Zimmermann, Klaus F


This paper studies possible impacts of international trade on domestic innovative activity. In the light of Schumpeterian ideas of dynamic efficiency, observed evidence of a positive relationship between static efficiency and trade may be undesirable. The paper examines the question by means of an econometric analysis of a huge data set of individual firms. The findings are: exporting reduces the effect of firm size on process innovations; and import competition, a larger integration in the foreign markets, and external demand support innovative activity. Copyright 1987 by WWZ and Helbing & Lichtenhahn Verlag AG

Suggested Citation

  • Zimmermann, Klaus F, 1987. "Trade and Dynamic Efficiency," Kyklos, Wiley Blackwell, vol. 40(1), pages 73-87.
  • Handle: RePEc:bla:kyklos:v:40:y:1987:i:1:p:73-87

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    References listed on IDEAS

    1. repec:bla:joares:v:22:y:1984:i:1:p:1-20 is not listed on IDEAS
    2. Weisbach, Michael S., 1988. "Outside directors and CEO turnover," Journal of Financial Economics, Elsevier, vol. 20(1-2), pages 431-460, January.
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    Cited by:

    1. Walter García Fontes & Ruben Tansini, 1996. "The effects of trade liberalization on R&D investments: the case of the Uruguayan manufacturing industry," Documentos de Trabajo (working papers) 0396, Department of Economics - dECON.
    2. Lorenzo Pupillo & Klaus Zimmermann, 1991. "Relative export prices and firm size in imperfect markets," Open Economies Review, Springer, vol. 2(3), pages 295-304, October.
    3. Sergio De Nardis & Marco Ventura, 2012. "Effect Of Firm Innovation On Labour Force Composition: The Case Of Italian Manufacturing," Economics Bulletin, AccessEcon, vol. 32(1), pages 338-353.
    4. Liliana Meza González, 2016. "Internacionalización y creación de nuevos productos y procesos en la industria manufacturera mexicana," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 31(2), pages 235-263.
    5. Eliasson, Gunnar & Lundberg, Lars, 1989. "The Creation of the EC Internal Market and Its Effects on the Competitiveness of Producers in Other Industrial Economies," Working Paper Series 229, Research Institute of Industrial Economics.

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