Sunk Costs of R&D, Trade and Productivity
The Moulds Industry Case
Bibliographic Data
| ID | 9710347 |
|---|---|
| Authors | Carlos Daniel Santos (0000-0002-8726-7458, Nova School of Business and Economics, corresponding author) |
| Year | 2017 |
| Volume | 127 |
| Issue | 603 |
| Pages | 1626-1664 |
| Publication date | 2017-08-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 0013-0133 • E-ISSN: 1468-0297 |
| Publisher | Oxford University Press (OUP) (PUBLISHER) |
| DOI | 10.1111/ecoj.12343 |
| OpenAlex | W2104396089 |
| Language | EN |
| Citations received | 1 |
| References cited | 25 |
International trade can create conditions for technological innovation and productivity growth. The mechanism linking trade and innovation is simple. By increasing access to foreign markets, trade allows the best firms to exploit the economies of scale in R&D. The potential to steal market share increases as product differentiation decreases. To measure the empirical importance of this mechanism, I set up and estimate a dynamic equilibrium model with endogenous size and productivity decisions. I then illustrate how the European economic integration induced innovation in the Portuguese Moulds industry and how a potential withdrawal from the EU would negatively affect innovation
Business · Economics · Economies of scale · Exploit · General equilibrium theory · Industrial organization · International economics · International trade · Intra-industry trade · Macroeconomics · Microeconomics · Product (mathematics · Productivity · Sunk costs · Trade barrier · Economic Growth and Productivity · Firm Innovation and Growth · Global trade and economics
Plants and Productivity in International Trade
Technology, Geography, and Trade
Relaxing Price Competition Through Product Differentiation
Markov-Perfect Industry Dynamics
Entry, Exit, and firm Dynamics in Long Run Equilibrium
Selection and the Evolution of Industry
Market Size, Trade, and Productivity
R&D Investment, Exporting, and Productivity Dynamics
The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity
Sunk costs and market structure
The Identification Power of Equilibrium in Simple Games
Trade Induced Technical Change? The Impact of Chinese Imports on Innovation, IT and Productivity
Innovating Firms and Aggregate Innovation
Innovation, Firm Dynamics, and International Trade
| Citation velocity | historical |
|---|---|
| Highly cited | No |