Trade liberalization, competition and growth

Omar Licandro (licandro.omar@gmail.com) and Antonio Navas (a.navas@sheffield.ac.uk)

UC3M Working papers. Economics from Universidad Carlos III de Madrid. Departamento de Economía

Abstract: The aim of this paper is to understand whether international trade may enhance innovation and growth through an increase in competition. We develop a twocountry endogenous growth model, both countries producing the same set of goods, with firm specific R&D and a continuum of oligopolistic sectors under Cournot competition. Since countries produce the same set of goods, trade openness makes markets more competitive, reducing prices and raising the incentives to innovate. More general, a reduction on trade barriers enhances growth by reducing domestic firms`market power.

Keywords: Trade; openess; Competition; and; growth; R&D (search for similar items in EconPapers)
JEL-codes: F13 F43 O3 (search for similar items in EconPapers)
Date: 2007-09
New Economics Papers: this item is included in nep-com, nep-cse, nep-int and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://e-archivo.uc3m.es/rest/api/core/bitstreams ... 5d572dcfbfd0/content (application/pdf)

Related works:
Working Paper: Trade Liberalization, Competition and Growth (2015)
Journal Article: Trade Liberalization, Competition and Growth (2011)
Working Paper: Trade Liberalization, Competition and Growth (2010)
Working Paper: Trade Liberalization, Competition and Growth (2008)
Working Paper: Trade Liberalization, Competition and Growth (2007)
Working Paper: TRADE LIBERALIZATION, COMPETITION AND GROWTH (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cte:werepe:we076536

Access Statistics for this paper

More papers in UC3M Working papers. Economics from Universidad Carlos III de Madrid. Departamento de Economía
Bibliographic data for series maintained by Ana Poveda (biblioteca@db.uc3m.es).