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...

We take up a growth model with both skilled and unskilled labor, and a steady migration of some unskilled workers, who undertake apprenticing, to the skilled group of workers. Apprenticing involves a period of observing and thus labor output foregone. The time-out for observing represents a cost...

We propose a two-country monopolistic competition model of business service offshoring that captures the advantage conferred by time zone differences. We emphasize the role of the entrepreneurs, who decide how to produce business services (i.e., domestic service provision or service offshoring)....