The impact of trade on intraindustry reallocation and aggregate industry productivity
Subtitle: a comment
By: Richard E. Baldwin, Frederic Robert-Nicoud.
Contributors: Robert-Nicoud, Frédéric.; National Bureau of Economic Research.
Series: NBER working paper series ;; working paper 10718; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 10718.
Publisher: National Bureau of Economic Research
Published: 2004
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Subjects: Intra-industry trade.; Industrial productivity.
Description: "Melitz (2003) demonstrates that greater trade openness raises industry productivity via a selection effect and via a production re-allocation effect.  Our comment points out that the set-up assumed in the Melitz model displays a trade off between static and dynamic efficiency gains.  That is, although freer trade improves industry productivity in a level sense, it harms it in a growth sense.  To make this point as simply as possible, we introduce a slight modification to the model that endogenises the growth rate of industry productivity and we show that liberalisation slows growth"--National Bureau of Economic Research web site.
Notes: Includes bibliographical references.
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