Bloom, Nicholas; Romer, Paul; Terry, Stephen; Reenen, … - Centre for Economic Performance, LSE - 2013
cost of innovating falls. Interestingly, the "China shock" is more likely to induce innovation than liberalization with … high wage countries. These implications are consistent with a range of recent empirical evidence on the impact of China and … specialization and market expansion. Calibrations of our model to the recent experience of the US with China suggests that there will …