Ricardian productivity differences and the gains from trade

Domestic productivity and variety gains from trade

JEL classification: F1 F12 We show theoretically and confirm empirically that domestic productivity has a significant impact on the demand for foreign varieties under the assumption that domestic and foreign varieties are imperfect substitutes. In particular, the demand for imported varieties ismore elastic for countries with comparative advantage. For an average good facing a median trade barr...

Rethinking Ricardian “Sum of Enjoyments”: Gains from Trade in a Co-Creational Economy

Productivity Gains , Intersectoral Linkages , and Trade : Indonesian Manufacturing , 1980 - 1993 ¤

The importance of R&D spillovers for productivity growth has been well-documented in the literature. While studies in the context of developed countries have extensively focused on sectoral linkages, research on North-South spillovers has been largely con...ned to the aggregate level. In this paper, we pursue the objective of ascertaining the contribution of international R&D spillovers to manu...

Productivity, Restructuring and the Gains from Takeovers

Little is known about the underlying sources of gains from takeovers. Using plant-level data from the U.S. Census Bureau, I show that one source of gains is increased productivity of capital and labor in target plants. In particular, acquirers significantly reduce investments, wages, and employment in target plants, though output is unchanged relative to comparable plants. Acquirers also aggres...

Volatility, Insurance, and the Gains from Trade∗

By reducing the negative correlation between local prices and productivity shocks, trade liberalization changes the volatility of returns. In the context of agriculture in developing countries—where production is risky, producers are risk averse, and insurance markets are incomplete—this change in volatility may have large welfare effects. In this paper, we empirically, analytically, and quanti...