Technology Adoption and the Selection Effect of Trade

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dc.contributor.author NAVAS-RUIZ, Antonio
dc.contributor.author SALA, Davide
dc.date.accessioned 2007-12-17T15:42:48Z
dc.date.available 2007-12-17T15:42:48Z
dc.date.issued 2007
dc.identifier.issn 1725-6704
dc.identifier.uri http://hdl.handle.net/1814/7691
dc.description.abstract The reallocation of output across plants and the productivity growth at individual plants are both important sources of productivity growth at the industry level. Recent evidence has shown that trade liberalization is related to both effects. While a trade model with firm heterogeneity can account for the first effect, it can not explain the second effect. We add to this model the option for firms to costly adopt more productive technologies and show that plant productivity actually rises in response to lower trade costs. Following trade liberalization, selection into exporting raises the market share only for some exporters. Therefore, a greater scale of operation amplifies their return from costly productivity-enhancement investments and leads a greater proportion of them to implement a more innovative technology. en
dc.language.iso en en
dc.publisher European University Institute
dc.relation.ispartofseries EUI ECO en
dc.relation.ispartofseries 2007/58 en
dc.subject International Trade en
dc.subject Technology Adoption en
dc.subject Productivity en
dc.subject F12 en
dc.subject F15 en
dc.subject L11 en
dc.subject O33 en
dc.subject O47 en
dc.title Technology Adoption and the Selection Effect of Trade en
dc.type Working Paper en
dc.neeo.contributor NAVAS-RUIZ|Antonio|aut|
dc.neeo.contributor SALA|Davide|aut|
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