Technology adoption and the selection effect of trade

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dc.contributor.author Navas-Ruiz, Antonio
dc.contributor.author Sala, Davide
dc.contributor.editor Universidad Carlos III de Madrid. Departamento de Economía
dc.date.accessioned 2007-09-26T18:26:15Z
dc.date.available 2007-09-26T18:26:15Z
dc.date.issued 2007-08
dc.identifier.issn 2340-5031
dc.identifier.uri http://hdl.handle.net/10016/956
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.
dc.format.extent 404068 bytes
dc.format.mimetype application/pdf
dc.language.iso eng
dc.language.iso eng
dc.relation.ispartofseries UC3M Working papers. Economics
dc.relation.ispartofseries 07-37
dc.rights Atribución-NoComercial-SinDerivadas 3.0 España
dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.subject.other International trade
dc.subject.other Technology adoption
dc.subject.other Productivity
dc.title Technology adoption and the selection effect of trade
dc.type workingPaper
dc.type workingPaper
dc.subject.jel F12
dc.subject.jel F15
dc.subject.jel L11
dc.subject.jel O33
dc.subject.jel 047
dc.subject.eciencia Economía
dc.rights.accessRights openAccess
dc.identifier.repec we076737
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