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Innovation, Firm Dynamics, and International Trade

Bibliographic Data

ID10182011
AuthorsAndrew Atkeson (Federal Reserve Bank of Minneapolis), Ariel Burstein (National Bureau of Economic Research), Ariel Tomás Burstein
Year2010
Volume118
Issue3
Pages433-484
Publication date2010-06-01
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueJournal of Political Economy (JOURNAL)
Journal identifiersISSN: 0022-3808 • E-ISSN: 1537-534X
PublisherUniversity of Chicago Press (PUBLISHER • US)
DOI10.1086/653690
OpenAlexW2120935945
LanguageEN
Citations received41
References cited32

We present a general equilibrium model of the response of firms' decisions to operate, innovate, and engage in international trade to a change in the marginal cost of international trade. We find that, although a change in trade costs can have a substantial impact on heterogeneous firms' exit, export, and process innovation decisions, the impact of changes in these decisions on welfare is largely offset by the response of product innovation. Our results suggest that microeconomic evidence on firms' responses to changes in international trade costs may not be informative about the implications of changes in these trade costs for aggregate welfare. (c) 2010 by The University of Chicago. All rights reserved

Business · Economic integration · Economics · General equilibrium theory · Industrial organization · International economics · International trade · Marginal cost · Market economy · Microeconomics · Offset (computer science · Product (mathematics · Trade barrier · Welfare · Firm Innovation and Growth · Global trade and economics · International Business and FDI

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Unique citing works41
Citations per year2,56
Citation span2010 - 2024 (15)
Citation velocityrecent
Highly citedNo
Citation typesNeutral: 40

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