Trade, firm selection and innovation: the competition channel
We study the welfare gains from trade in an economy with heterogeneous firms, variable markups and endogenous growth. Variable markups arise from oligopolistic competition, and cost-reducing innovation is the engine of long-run growth. Trade liberalisation stiffens competition by reducing markups, g...
| Main Authors: | , |
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| Format: | Article |
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Wiley
2018
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| Subjects: | |
| Online Access: | https://eprints.nottingham.ac.uk/46994/ |