strategically linked via the incentive compatibility constraint. Importantly, trade costs affect cartel shipments and welfare not …

(PTAs) and show that the indirect effects can give rise to trade diversion. We also characterize the welfare effects of … persistent finding is that, in the absence of appropriate regulation, preferential trade liberalization can be welfare …

We study the gains from trade in an economy with oligopolistic competition, firm heterogeneity, and innovation … domestic sales. Thus the overall effect of trade on markups is pro-competitive and a key source of the associated welfare gains …. In addition to markups, selection and innovation provide additional channels through which the trade-induced effect on …

enforcement of IPR yields a higher level of innovation and global welfare only if the developing country does not innovate. A … own innovation. The analysis predicts that the willingness to enforce IPR is U-shaped in a country GDP: small …

We study the gains from trade in a model with oligopolistic competition, heterogeneous firms and innovation, and … provide a formula to decompose the mechanism. The new insight we provide is that market concentration can be a welfare … increases welfare via productivity improvements. In the calibrated version of the model we show that a trade-induced increase in …

This paper studies the market and welfare effects of income heterogeneity in monopolistically competitive product …

, it is possible that prices increase, consumers lose, and welfare deteriorates in both countries. This negative welfare …

domestic welfare. We consider the potential implementation of three innovation agreements: cooperative research joint venture … competitiveness of the domestic firm and welfare. A subsidy policy that induces the foreign firm to accept a feasible cooperative RJV … when it strictly prefers a feasible non-cooperative RJV is always welfare improving. …

counterproductive, slightly reducing welfare in the Global South and for the world. Overall, there is substantial scope for policy …