Arbeitspapier
Trade with R&D costs to entering foreign markets
In this paper, we present a standard quality ladders endogenous growth model with one significant new assumption, that it takes time for firms to learn how to export. We show that this model without Melitz-type assumptions can account for all the evidence that the Melitz (2003) model was designed to explain plus much evidence that the Melitz model cannot account for. In particular, consistent with the empirical evidence, we find that trade liberalization leads to a higher exit rate of firms, that exporters charge higher prices for their products and that many large firms do not export.
- Language
-
Englisch
- Bibliographic citation
-
Series: SSE/EFI Working Paper Series in Economics and Finance ; No. 727
- Classification
-
Wirtschaft
Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
Trade Policy; International Trade Organizations
Economic Growth of Open Economies
Innovation and Invention: Processes and Incentives
One, Two, and Multisector Growth Models
- Subject
-
Trade liberalization
heterogeneous firms
quality ladders
endogenous growth
Neue Wachstumstheorie
Außenhandelsliberalisierung
Unternehmensentwicklung
Betriebliche Forschung
Produktqualität
Exportindustrie
- Event
-
Geistige Schöpfung
- (who)
-
Segerstrom, Paul S.
Stepanok, Ignat
- Event
-
Veröffentlichung
- (who)
-
Stockholm School of Economics, The Economic Research Institute (EFI)
- (where)
-
Stockholm
- (when)
-
2010
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
This object is provided by:
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Segerstrom, Paul S.
- Stepanok, Ignat
- Stockholm School of Economics, The Economic Research Institute (EFI)
Time of origin
- 2010
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