industry productivity. For this purpose we develop a reciprocal dumping model of international trade with heterogeneous firms … expected industry productivity. The central results of the paper regarding firm and industry level R&D spending differ …

industry productivity. For this purpose we develop a reciprocal dumping model of international trade with heterogeneous firms … expected industry productivity. The central results of the paper regarding firm and industry level R&D spending differ … significantly from the case of homogeneous firms. -- international trade ; firm heterogeneity ; R&D ; productivity ; market …

industry productivity and social welfare. For this purpose we develop a reciprocal dumping model of international trade with … heterogeneous firms and endogenous R&D. We identify two effects of trade liberalization on productivity: a direct effect through … low (high) trade costs; (ii) increases expected industry productivity; and (iii) raises expected social welfare if trade …

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 …

industry productivity and social welfare. For this purpose we develop a reciprocal dumping model of international trade with … heterogeneous firms and endogenous R&D. We identify two effects of trade liberalization on productivity: a direct effect through … low (high) trade costs; (ii) increases expected industry productivity; and (iii) raises expected social welfare if trade …

face a fall in output, mark-ups and profits, and the average productivity of survivors increases. These pro …