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- W2116874709 abstract "This paper develops an oligopolistic model of international trade with heterogeneous firms and endogenous RD (ii) a scale effect due to changes in firm size; (iii) a selection effect due to inefficient firms leaving the market; and (iv) a market-share reallocation effect as efficient firms expand and inefficient firms reduce their output. We show how these effects operate in the short run when market structure is fixed, and in the long run when market structure is endogenous. Among the robust results that hold for any market structure are that trade liberalization (i) increases (decreases) aggregate RD (ii) increases expected firm size if trade costs are high; and (iii) raises expected social welfare if trade costs are low." @default.
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- W2116874709 title "The effects of trade liberalization on productivity and welfare: The role of firm heterogeneity, R&D and market structure" @default.
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