Asymmetries with R&D-Driven Growth and Heterogeneous Firms

Frédéric Olland ()

Working Papers of BETA from Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg

Abstract: This paper studies the impact of trade liberalization on the productivity growth of two asymmetric countries in a R&D driven growth model with heterogeneous firms. The Melitz’s reallocation of production induces positive but asymmetric productivity gains. Growth is also affected in an asymmetric way because trade liberalization reduces innovation incentives with a different strength in the two countries. A more productive country suffers a higher slowdown in the productivity growth rate.

Keywords: heterogeneous firms; trade and endogenous growth; productivity gap. (search for similar items in EconPapers)
JEL-codes: F43 O47 (search for similar items in EconPapers)
Date: 2012
New Economics Papers: this item is included in nep-bec, nep-fdg, nep-ino, nep-opm and nep-sbm
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ulp:sbbeta:2012-16

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