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• W1585362000 abstract "Empirical evidence shows that trade liberalization improves pro- ductivity not just because of a selection e ect but also because of productivity gains within rms. This paper proposes a model that allows for both channels, by adding the option to innovate to a trade model. In contrast to the existing literature, the process innovation is modeled as a continuous variable and there is both a xed and a variable cost to innovate. The interaction between the innovation and export choices is key to understand the di erent equilibria in the open economy and the outcomes following a trade liberalization. I calibrate the model to match the Spanish economy and explore the consequences of di erent trade policies. Simulations reveal that a trade policy that enhances innovation does not necessarily induce larger productivity gains." @default.
• W1585362000 created "2016-06-24" @default.
• W1585362000 creator A5042757472 @default.
• W1585362000 date "2012-06-07" @default.
• W1585362000 modified "2023-09-27" @default.
• W1585362000 title "Trade, innovation and productivity" @default.
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