-finance optimizing problem. We shows that under conditions similar to those which prevailed in Russia and Argentina prior to their …

simple model is used to show that import competition may stimulate growth by reducing the market power of domestic innovators …. Specifically, import competition forces domestic innovators to chose between either quickening their pace of innovation or being … displaced by foreign innovators. The pro-growth effect of import competition is shown to be welfare-increasing. The paper …

static and dynamic efficiency gains. That is, although freer trade improves industry productivity in a level sense, it harms …