Arbeitspapier

Spillovers from Foreign Exporters

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We develop a general equilibrium model of international trade with heterogeneous firms that accounts for productivity spillovers transmitted by foreign exporters. Everything else equal, stronger spillovers increase welfare. We embed the model framework into a trade policy scenario where countries strategically set inter-country variable trade costs for the trading partner. In the strategic Nash-equilibrium policy, governments trade-off welfare gains from protectionism and those which are due to spillovers from foreign exporters. The equilibrium degree of protectionism is decreasing in the strength of the spillover. Policy coordination induces welfare gains, but these gains can be humpshaped in the spillover strength.

ISBN: 978-3-86788-455-6

Language: Englisch

Bibliographic citation: Series: Ruhr Economic Papers ; No. 400

Classification: Wirtschaft
Firm Performance: Size, Diversification, and Scope

Subject: spillovers
heterogeneous firms

Event: Geistige Schöpfung

(who): Bohnstedt, Anna

Event: Veröffentlichung

(who): Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI)

(where): Essen

(when): 2013

DOI: doi:10.4419/86788455

Handle: http://hdl.handle.net/10419/68609

Last update: 10.03.2025, 11:44 AM CET

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Object type

Arbeitspapier

Associated

Bohnstedt, Anna
Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI)

Time of origin

2013

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