Atkeson, Andrew; Burstein, Ariel - National Bureau of Economic Research (NBER) - 2007
of firms export, a decline in marginal trade costs raises process innovation in exporting firms relative to that of non … activity. We first show analytically that if all firms export with equal intensity, then a reduction in international trade … costs has no impact at all, in steady-state, on firms' investments in process innovation. We then show that if only a subset …