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Trade Liberalization, Selection and Technology Adoption with Vertical Linkages

Antonio Navas () and Antonella Nocco ()

No 2016008, Working Papers from The University of Sheffield, Department of Economics

Abstract: Vertical linkages accounts for a large proportion of the volume of intermediate inputs used in an industry. This paper analyses the role played by vertical linkages on the effects of trade liberalization on technology adoption and their consequences on average productivity and welfare in a trade model with heterogeneous firms. We find that the strength of vertical linkages shapes the effects that trade liberalization produces on firms' survival and technology upgrading decisions, having an impact on the average productivity of the economy and, ultimately, on welfare.

Keywords: trade liberalization; heterogeneity; selection; technology adoption; vertical linkages (search for similar items in EconPapers)
JEL-codes: F1 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eff and nep-int
Date: 2016-12
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http://www.sheffield.ac.uk/economics/research/serps/articles/2016_008 First version, December 2016 (application/pdf)

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Working Paper: Trade Liberalization, Selection and Technology Adoption with Vertical Linkages (2019) Downloads
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