industry productivity and social welfare. For this purpose we develop a reciprocal dumping model of international trade with … heterogeneous firms and endogenous R&D. We identify two effects of trade liberalization on productivity: a direct effect through … low (high) trade costs; (ii) increases expected industry productivity; and (iii) raises expected social welfare if trade …

, and North Africa. We find strong evidence of horizontal productivity spillovers to domestic firms derived from foreign …This paper analyzes the horizontal productivity effects of foreign direct investment (FDI) from industrialized and …-firm presence. However, these effects are clearly dependent on domestic firms’ absorptive capacity. The largest productivity effects …

While the economic theory predicts that developing countries will gain the most from technology spillovers, there have … to disentangle the effects of international spillovers via trade and FDI. My findings show that imports remain the main … on domestic productivity. The domestic R&D capital stock plays an active role in Western Europe while in the Eastern part …

The paper concentrates on the question whether the low level of productivity in East Germany can be explained by … younger cohorts. This impedes a fast convergence in productivity between East and West Germany. …