Trade Liberalization, International Relocation of Firms, and Economic Growth

Wataru Johdo ()
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Wataru Johdo: Tokyo Keizai University, Tokyo, Japan, Postal: Tokyo Keizai University, Tokyo, Japan

Journal of Economic Integration, 2024, vol. 39, issue 2, 508-523

Abstract: This paper presents a framework for understanding the role of global tariff rate reductions in affecting the world growth rate, given knowledge spillovers in research and development (R&D) and the relocation of firms. In particular, we highlight one aspect of the model: the international relocation of firms associated with a reduction in world tariff rates. This paper shows that, given the spillover effect of localized R&D knowledge, a simultaneous multilateral reduction in the common tariff rate increases the world growth rate through the relocation of firms.

Keywords: tariffs; knowledge spillovers; R&D; international relocation of firms; endogenous growth (search for similar items in EconPapers)
JEL-codes: E20 F13 F16 F21 F43 (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ris:integr:0910

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