Trade, Firm Selection and Innovation: The Competition Channel
(2017)
Journal Article
Impullitti, G., & Licandro, O. (2018). Trade, Firm Selection and Innovation: The Competition Channel. Economic Journal, 128(608), 189-229. https://doi.org/10.1111/ecoj.12466
We study the welfare gains from trade in an economy with heterogeneous firms, variable markups and endogenous growth. Variable markups arise from oligopolistic competition, and cost-reducing innovation is the engine of long-run growth. Trade liberali... Read More about Trade, Firm Selection and Innovation: The Competition Channel.