On the Growth Effects of Import Competition
This paper shows that the market structure of an economy's research sector is an important determinant of the aggregate growth rate, even though it has hereto been ignored in the new growth literature. To make this point in a concrete context, a simple model is used to show that import competition may stimulate growth by reducing the market power of domestic innovators. Specifically, import competition forces domestic innovators to chose between either quickening their pace of innovation or being displaced by foreign innovators. The pro-growth effect of import competition is shown to be welfare-increasing. The paper studies a number of policy implications including the growth effects of anti-trust policy, partial liberalization and trade in intellectual property rights.
Year of publication: |
1992-04
|
---|---|
Authors: | Baldwin, Richard |
Institutions: | National Bureau of Economic Research (NBER) |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
Supply-Chain Trade: A Portrait of Global Patterns and Several Testable Hypotheses
Baldwin, Richard, (2013)
-
Networked FDI: Sales and Sourcing Patterns of Japanese Foreign Affiliates
Baldwin, Richard, (2012)
-
Euros and Zeros: The Common Currency Effect on Trade in New Goods
Baldwin, Richard, (2006)
- More ...