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Beyond trade costs : firms' endogenous access to international markets

Pires, Armando José Garcia
Working paper
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dp2007-34.pdf (282.7Kb)
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http://hdl.handle.net/11250/163104
Utgivelsesdato
2007-10
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  • Discussion papers (SAM) [638]
Sammendrag
In this paper we argue that the level of access to international

markets by firms is related not only to exogenous factors such as trade

costs, but also to endogenous factors such as strategic competition on

R&D. In particular, we show that: (1) higher efficiency of R&D (like

low trade costs) makes trade easier for firms (given that R&D increases

the profitability of exports); (2) firms with a first-mover advantage in

R&D have higher competitiveness levels, and as a result they also have

better access to export markets; and (3) the volume of trade is always

higher when firms can invest in R&D than when they cannot invest

in R&D.
Utgiver
Norwegian School of Economics and Business Administration. Department of Economics
Serie
Discussion paper
2007:34

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