Van Long, Ngo; Raff, Horst; Staehler, Frank - Department of Economics, School of Business - 2007
This paper develops an oligopolistic model of international trade with heterogeneous firms and endogenous R&D to … examine how trade liberalization affects firm and industry productivity, as well as social welfare. We identify four effects … of trade liberalization on productivity: (i) a direct effect through changes in R&D investment; (ii) a scale effect due …