TRADE LIBERALIZATION, COMPETITION AND GROWTH

Omar Licandro () and Antonio Navas ()

Working Papers from HAL

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 two-country 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)
Date: 2007-09-01
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00354236v1
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Citations: View citations in EconPapers (7)

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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)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:halshs-00354236

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