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Trade Liberalization, Selection and Technology Adoption with Vertical Linkages

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  • Antonio Navas
  • Antonella Nocco

Abstract

This paper analyses the role played by vertical linkages on the effects of trade liberalization on technology adoption and their consequences on average productivity and welfare in a trade model with heterogeneous firms. We find that the strength of vertical linkages shapes the effects that trade liberalization produces on firms’ survival and technology upgrading decisions, having an impact on the average productivity of the economy and, ultimately, on welfare.

Suggested Citation

  • Antonio Navas & Antonella Nocco, 2019. "Trade Liberalization, Selection and Technology Adoption with Vertical Linkages," CESifo Working Paper Series 7788, CESifo.
  • Handle: RePEc:ces:ceswps:_7788
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    Keywords

    trade liberalization; heterogeneity; selection; technology adoption; vertical linkages;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General

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