Asymmetries with R&D-Driven Growth and Heterogeneous Firms
This paper studies the impact of trade liberalization on the productivity growth of two asymmetric countries in a R&D driven growth model with heterogeneous firms. The Melitz’s reallocation of production induces positive but asymmetric productivity gains. Growth is also affected in an asymmetric way because trade liberalization reduces innovation incentives with a different strength in the two countries. A more productive country suffers a higher slowdown in the productivity growth rate.
|Date of creation:||2012|
|Date of revision:|
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- Bulent Unel, 2010.
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Wiley Blackwell, vol. 18(3), pages 465-481, 08.
- Bulent Unel, . "Technology Diffusion through Trade with Heterogeneous Firms," Departmental Working Papers 2006-15, Department of Economics, Louisiana State University.
- Baldwin, Richard & Robert-Nicoud, Frédéric, 2005.
"Trade and Growth with Heterogeneous Firms,"
CEPR Discussion Papers
4965, C.E.P.R. Discussion Papers.
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- Richard E. Baldwin & Frédéric Robert-Nicoud, 2006. "Trade and Growth with Heterogenous Firms," NBER Working Papers 12326, National Bureau of Economic Research, Inc.
- Baldwin, Richard & Robert-Nicoud, Frédéric, 2006. "Trade and Growth with Heterogenous Firms," CEPR Discussion Papers 5563, C.E.P.R. Discussion Papers.
- Richard E. Baldwin & Frédéric Robert-Nicoud, 2006. "Trade and Growth with Heterogeneous Firms," CEP Discussion Papers dp0727, Centre for Economic Performance, LSE.
- Rod Falvey & David Greenaway & Zhihong Yu, 2011. "Catching Up or Pulling Away: Intra-Industry Trade, Productivity Gaps and Heterogeneous Firms," Open Economies Review, Springer, vol. 22(1), pages 17-38, February.
- Segerstrom, Paul S, 1998. "Endogenous Growth without Scale Effects," American Economic Review, American Economic Association, vol. 88(5), pages 1290-1310, December.
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