Trade, firm selection and innovation: the competition channel

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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...

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Bibliographic Details
Main Authors:	Impullitti, Giammario, Licandro, Omar
Format:	Article
Published:	Wiley 2018
Subjects:	Endogenous Growth Heterogeneous Firms Oligopoly Variable Markups Dynamic Gains from Trade
Online Access:	https://eprints.nottingham.ac.uk/46994/

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