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Cost‐reducing R&D Investment, Labor Market and Trade
Author(s) -
Morita Tadashi
Publication year - 2012
Publication title -
review of international economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.513
H-Index - 58
eISSN - 1467-9396
pISSN - 0965-7576
DOI - 10.1111/j.1467-9396.2012.01057.x
Subject(s) - economics , oligopoly , investment (military) , tariff , international economics , monetary economics , microeconomics , cournot competition , politics , political science , law
This paper constructs a two‐country model in which oligopolistic firms export goods and undertake cost‐reducing R&D investment. Each country imposes tariffs. A decrease in the tariff rates in both countries decreases cost‐reducing R&D investment.