Trade liberalization and heterogeneous within-firm productivity improvements

Abstract : This paper develops an intra-industry model of trade with heterogeneous firms to investigate the impact of trade on the evolution of within firm productivity. The main contribution is to incorporate endogenous labor productivity gains. Heterogeneous firms have different incentives to invest in foreign technology which in turns enhances efficiency heterogeneously. Trade liberalization reduces the price of imported capital equipment and increases factor demands. These mechanisms introduce two novel results. First, aggregate productivity increases due to within-firm productivity improvements. Second, tariffs reduction has little impact on the extensive margin of trade in countries already highly open.
Document type :
Preprints, Working Papers, ...
Complete list of metadatas

Cited literature [18 references]  Display  Hide  Download

https://halshs.archives-ouvertes.fr/halshs-00590303
Contributor : Caroline Bauer <>
Submitted on : Tuesday, May 3, 2011 - 10:29:46 AM
Last modification on : Tuesday, April 24, 2018 - 5:20:09 PM
Long-term archiving on : Thursday, August 4, 2011 - 3:11:12 AM

File

wp200636.pdf
Files produced by the author(s)

Identifiers

  • HAL Id : halshs-00590303, version 1

Collections

Citation

Maria Bas, Ivan Ledezma. Trade liberalization and heterogeneous within-firm productivity improvements. 2008. ⟨halshs-00590303⟩

Share

Metrics

Record views

308

Files downloads

694