Trade liberalization and product R&D in a differentiated duopoly

Autor:	Cheng-Hau Peng, Hong Hwang, Yi-Shan Hsueh
Rok vydání:	2018
Předmět:	Economics and Econometrics 050208 finance Product innovation 05 social sciences Monetary economics Standard result Incentive Willingness to pay Negative relationship 0502 economics and business Economics Product (category theory) 050207 economics Duopoly Free trade Finance
Zdroj:	International Review of Economics & Finance. 56:34-38
ISSN:	1059-0560
Popis:	This paper employs an intra-industry trade model with one firm in each country to examine the impact of trade liberalization on firms' incentives to engage in product R&D. We show that trade liberalization may decrease a firm's product R&D if the marginal willingness to pay for the firm's innovation from its home consumers is higher than that from its foreign consumers. This negative relationship between trade liberalization and R&D investments is opposite to the standard result in the literature where the firms engage in process R&D.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::73ee142bf2969d4b751ebff8d0700efa https://doi.org/10.1016/j.iref.2018.03.015 Zobrazit plný text záznamu Full Text from ScienceDirect