We study the gains from trade in a model with oligopolistic competition, heterogeneous firms and innovation, and … concentration contributes substantially to the gains from trade, mostly via its stimulating effect on innovation. Sizeable gains …

The New Trade Theory predicts that international trade lowers prices for consumers and expands the choices available to …

This paper examines how trade liberalization affects the innovation incentives of firms, and what this implies for …

This paper proposes an equilibrium theory of nominal exchange rates, which offers a new perspective on various issues … features of this theory are that the nominal exchange rate is determined in international financial markets, that the risk … from the nominal exchange rate. In terms of policy, this novel theory implies that a country with an exchange rate peg and …

countries. In theory, trade openness can affect inflation through changes in market competitiveness and productivity …

. Importantly, the theoretical model captures the strategic behavior between competing firms, its effect on their innovation …