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A positive international environment favors growth of the several economies in a given region, but it does not assure that the differences in the economic potential of the several countries are reduced in this process. Alternatively, the presence of productive complementarities might foster...
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increased competition from demand shocks in export markets - and the induced product mix reallocations - induce productivity … changes within the firm. We then empirically test for this connection between the demand shocks and the productivity of multi …-product firms exporting to those destinations. We find that the effect of those demand shocks on productivity are substantial - and …
Persistent link: https://www.econbiz.de/10012456244
In a general equilibrium product-cycle model, lower trade barriers increase Southern purchasing power, which lifts long-run growth by increasing the profit from innovation. In the short run, factors of production must be reallocated inside firms, which lowers the opportunity cost of innovation,...
Persistent link: https://www.econbiz.de/10012458713
This study analyzes the equilibrium level of product differentiation, aggregate profit, and aggregate welfare from competition and two types of cooperation in product R&D investments in an international duopoly model under price competition. We show that the equilibrium level of product...
Persistent link: https://www.econbiz.de/10012915688
-exporters are unaffected. Models with firm heterogeneity in total factor productivity predict the opposite. To solve this puzzle, we …
Persistent link: https://www.econbiz.de/10014177697
We analyze the foundations of the relationship between trade and total factor productivity (TFP) in the Ricardian model … "many" low-productivity industries exit the market. We derive a model-based measure of this effect that requires only …
Persistent link: https://www.econbiz.de/10014195411
hold a comparative advantage. This paper aims at quantifying the effects of such competitive pressures on the productivity … causal relationship between the increase of developing countries' world market shares and Italian productivity across sectors …
Persistent link: https://www.econbiz.de/10014058933
allocative and productive efficiency. We review theory and recent evidence on these linkages and also explore a third effect on …
Persistent link: https://www.econbiz.de/10014071604