Impullitti, Giammario; Licandro, Omar; Rendahl, Pontus - 2021
We study the gains from trade in a model with oligopolistic competition, heterogeneous firms and innovation, and … increases welfare via productivity improvements. In the calibrated version of the model we show that a trade-induced increase in … concentration contributes substantially to the gains from trade, mostly via its stimulating effect on innovation. Sizeable gains …