The American economic review, 2013-05, Vol.103 (3), p.208-213
2013
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Details
- Autor(en) / Beteiligte
- Titel
- A Trapped-Factors Model of Innovation
- Ist Teil von
- The American economic review, 2013-05, Vol.103 (3), p.208-213
- Ort / Verlag
- Nashville: American Economic Association
- Erscheinungsjahr
- 2013
- Quelle
- Business Source Ultimate
- Beschreibungen/Notizen
- We explain a counterintuitive empirical finding: Firms facing more import competition do more innovation. In our model, factors are trapped inside a firm. An increase in import competition encourages a firm to innovate by reducing the opportunity cost of inputs. Without trapped factors, trade liberalization leads to a small permanent increase in the worldwide rate of growth. With trapped factors, firms that face more import competition do relatively more innovation. The extra innovation induced by trapped factors induces a small permanent increase in aggregate output, consumption, and welfare, generalizing the appropriate estimate of the gains from trade. [PUBLICATION ABSTRACT]
- Sprache
- Englisch
- Identifikatoren
- ISSN: 0002-8282eISSN: 1944-7981DOI: 10.1257/aer.103.3.208Titel-ID: cdi_proquest_miscellaneous_1418121328
- Format
- –
- Schlagworte
- Case studies, Competition, Design, Economic growth models, Economic models, Growth models, Growth rate, Growth rates, Human capital, Import competition, Imports, Innovation, Innovations, INTERNATIONAL TRADE AND LABOR MARKETS, Opportunity cost, Opportunity costs, Output, Parametric models, Product innovation, Studies, Technological innovation, Trade, Trade development, Trade liberalization