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Pré-publication, Document de travail Année : 2007

TRADE LIBERALIZATION, COMPETITION AND GROWTH

Résumé

The aim of this paper is to understand whether international trade may enhance innovation and growth through an increase in competition.We develop a two-country endogenous growth model, both countries producing the same set of goods, with firm specific R&D and a continuum of oligopolistic sectors under Cournot competition. Since countries produce the same set of goods, trade openness makes markets more competitive, reducing prices and raising the incentives to innovate. More general, a reduction on trade barriers enhances growth by reducing domestic firms'market power.
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Dates et versions

halshs-00354236, version 1 (19-01-2009)

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  • HAL Id : halshs-00354236 , version 1

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Omar Licandro, Antonio Navas-Ruiz. TRADE LIBERALIZATION, COMPETITION AND GROWTH. 2007. ⟨halshs-00354236⟩
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Dernière date de mise à jour le 28/04/2024
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