Trade Liberalisation, Process and Product Innovation, and Relative Skill Demand
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 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.
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.:
- Haaland, Jan I. & Kind, Hans Jarle, 2008.
"R&D policies, trade and process innovation,"
Journal of International Economics,
Elsevier, vol. 74(1), pages 170-187, January.
- Rosenkranz, Stephanie, 2003. "Simultaneous choice of process and product innovation when consumers have a preference for product variety," Journal of Economic Behavior & Organization, Elsevier, vol. 50(2), pages 183-201, February.
- Neary, J Peter, 2002.
"Foreign Competition and Wage Inequality,"
Review of International Economics,
Wiley Blackwell, vol. 10(4), pages 680-93, November.
- David H. Autor & Lawrence F. Katz & Melissa S. Kearney, 2005.
"Trends in U. S. Wage Inequality: Re-Assessing the Revisionists,"
Harvard Institute of Economic Research Working Papers
2095, Harvard - Institute of Economic Research.
- David H. Autor & Lawrence F. Katz & Melissa S. Kearney, 2005. "Trends in U.S. Wage Inequality: Re-Assessing the Revisionists," NBER Working Papers 11627, National Bureau of Economic Research, Inc.
- J Peter Neary, 2002.
"Globalisation and Market Structure,"
200220, School of Economics, University College Dublin.
- Pia Weiss, 2003.
"Adoption of Product and Process Innovations in Differentiated Markets: The Impact of Competition,"
Review of Industrial Organization,
Springer, vol. 23(3), pages 301-314, December.
- Pia Weiss, 2003. "Adoption of Product and Process Innovations in Differentiated Markets: The Impact of Competition," Review of Industrial Organization, Springer, vol. 23(3_4), pages 301-314, December.
- Lin, Ping & Saggi, Kamal, 2002. "Product differentiation, process R&D, and the nature of market competition," European Economic Review, Elsevier, vol. 46(1), pages 201-211, January.
When requesting a correction, please mention this item's handle: RePEc:jep:wpaper:06004. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Gall)
If references are entirely missing, you can add them using this form.