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Recent empirical work has found that firms do more innovation when they are exposed to more low-cost import competition (Bloom, Draca and Van Reenen, 2012). Why is it that they innovate after somethin...
TRAPPED FACTORS AND CHINA'S IMPACT ON GLOBAL GROWTH
TRAPPED FACTORS CHINA'S IMPACT GLOBAL GROWTH
2015/7/15
In a general equilibrium product-cycle model, lower trade barriers increase Southern purchasing power, which lifts long-run growth by increasing the profit from innovation. In the short run, factors o...