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Better, Faster, Stronger: Global Innovation and Trade Liberalization

Author

Listed:
  • Federica Coelli

    (University of Zurich)

  • Andreas Moxnes

    (University of Oslo and CEPR)

  • Karen Helene Ulltveit-Moe

    (University of Oslo and CEPR)

Abstract

This paper estimates the effect on innovation of increased market access facilitated by trade liberalization. We use a novel empirical design that exploits tariff cuts during the 1990s, along with detailed data on innovation among firms from 65 countries. Our results reveal a large effect of tariff cuts on innovation as measured by patent data, suggesting that multilateral liberalization has promoted innovation and growth. These effects are not driven by the deterioration of innovation quality, and the results are robust to controlling for changes in the patent system and to industry-wide trends in innovation.

Suggested Citation

  • Federica Coelli & Andreas Moxnes & Karen Helene Ulltveit-Moe, 2022. "Better, Faster, Stronger: Global Innovation and Trade Liberalization," The Review of Economics and Statistics, MIT Press, vol. 104(2), pages 205-216, May.
    • Handle: RePEc:tpr:restat:v:104:y:2022:i:2:p:205-216
    DOI: 10.1162/rest_a_00951
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    JEL classification:

    • F0 - International Economics - - General
    • F1 - International Economics - - Trade
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F6 - International Economics - - Economic Impacts of Globalization

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