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the winner firm manufacturing in the North. The other is outsourcing-targeted R&D race, which culminates in the winner … firm manufacturing in the South. In equilibrium, manufacturing costs are lower in the South, but engaging in outsourcing … globalization by considering a reduction in the resource-requirement in outsourcing-targeted R&D (triggered by reduced communication …
Persistent link: https://www.econbiz.de/10005489467
This paper explores how trade openness affects both product and process innovation in a factor proportions model of trade and firm heterogeneity. Trade openness expands the profit opportunities of the most productive firms and expels the less efficient firms out of the market, making process...
Persistent link: https://www.econbiz.de/10011161271