Teteryatnikova, Mariya. 2018. R&D in trade networks: The role of asymmetry. International Journal of Industrial Organization. 61 307-350.

RIS

@ARTICLE{Teteryatnikova2018,
title = {R&D in trade networks: The role of asymmetry},
author = {Mariya Teteryatnikova},
year = {2018},
doi = {https://doi.org/10.1016/j.ijindorg.2018.07.010},
url = {https://www.sciencedirect.com/science/article/pii/S0167718718300833?via%3Dihub},
volume = {61},
language = {EN},
pages = {307-350},
journal = {International Journal of Industrial Organization},
abstract = {This paper argues that asymmetry in countries’ trade exposure is an important determinant of firms’ R&D, productivity and countries’ welfare. We model a choice of R&D in a given trade network focusing on asymmetric hub-and-spoke networks and symmetric networks. We find that R&D, productivity and total surplus are highest in a hub economy and lowest in a spoke, while intermediate levels are exhibited by countries in a symmetric network. Thus, regional/preferential trade agreements, resulting in asymmetric trade networks, benefit hubs but harm spokes. By contrast, multilateral trade agreements, resulting in a complete network, generate equal R&D and welfare benefits for all countries.},
}