Navas, A. and Sala, D. (2015) Innovation and trade policy coordination: The role of firm heterogeneity. The World Economy, 38 (8). pp. 1205-1224. ISSN 0378-5920
Abstract
Recent studies have concluded that R&D grants can induce firms to export and that exporting and innovating can be complementary activities at the firm level. Yet the trade literature has paid little attention to the scope of innovation policy as a stimulus to both trade and innovation. To investigate this question we rely on a general work-horse model of trade and firm heterogeneity with firm investments in R&D activities. The interplay of innovation and trade policies uncover novel results. In particular, we show that the effects of either policy depend on the degree of protectionism in a country. Therefore, countries can respond differently to the same policy, and similarly to different policies. In such a context, different governments may face different trade-offs in achieving a given target.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2015 John Wiley & Sons Ltd. This is an author produced version of a paper subsequently published in The World Economy. Uploaded in accordance with the publisher's self-archiving policy. This is the peer reviewed version of the following article: 'Innovation and trade policy coordination: The role of firm heterogeneity', which has been published in final form at http://dx.doi.org/10.1111/twec.12278. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving (http://olabout.wiley.com/WileyCDA/Section/id-820227.html#terms). |
Keywords: | innovation; innovation policy; heterogeneous firms; technology adoption; trade policy |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Department of Economics (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 27 Nov 2015 16:36 |
Last Modified: | 19 Jul 2017 14:13 |
Published Version: | http://dx.doi.org/10.1111/twec.12278 |
Status: | Published |
Publisher: | Wiley: 24 months |
Refereed: | Yes |
Identification Number: | 10.1111/twec.12278 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:89531 |