Long, Ngo Van; Raff, Horst; Stähler, Frank - Institut für Weltwirtschaft (IfW) - 2008
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 …