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• W4320194754 abstract "Multinational firms indicate that the threat of trade secret misappropriation by current and former employees remains a substantial impediment to conducting business in emerging markets. In this paper, I examine the economic implications of strengthening international standards in trade secret protection. I develop a general equilibrium model featuring heterogeneous firms that differ in the degree to which they must expose employees to trade secrets. To prevent employee misappropriation, firms offer incentive compatible wage premiums based on their individual exposure and the common level of legal protection. Entry selection into the international market generates an endogenous distribution of firm specific wages and positive unemployment in equilibrium. I find that stronger protection stimulates multinational investment and increases aggregate productivity. However, distributional effects leave many workers worse-off." @default.
• W4320194754 created "2023-02-13" @default.
• W4320194754 creator A5039971979 @default.
• W4320194754 date "2023-05-01" @default.
• W4320194754 modified "2023-09-26" @default.
• W4320194754 title "Trade secret protection, multinational firms and international trade" @default.
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• W4320194754 doi "https://doi.org/10.1016/j.inteco.2023.01.007" @default.
• W4320194754 hasPublicationYear "2023" @default.
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