| 来源类型 | Discussion paper
|
| 规范类型 | 论文
|
| 来源ID | DP8942
|
| DP8942 Trade liberalization and credit constraints: Why opening up may fail to promote convergence |
| Monika Schnitzer
|
| 发表日期 | 2012-04-01
|
| 出版年 | 2012
|
| 语种 | 英语
|
| 摘要 | Recent evidence suggests that despite opening up a country for trade, the productivity gap between developed and emerging economies often does not close. This paper examines credit constraints as one channel held responsible for hampering convergence. Specifically, we extend a Melitz and Ottaviano (2008) type trade model with variable mark-ups to allow for endogenous technology adoption. We consider a framework with two countries that potentially differ with respect to credit market development. Firms have the option to adopt a more efficient technology by paying some fixed cost. A fraction of the fixed technology adoption cost has to be financed externally: in a less developed credit market, the costs of external finance and thus the total costs of technology adoption are higher. A reduction in trade costs raises demand abroad (pro technology-adoption effect) but reduces demand at home because of import competition (anti technology-adoption effect). We find that trade liberalization increases economic performance, that is average productivity and technology adoption, in both countries but that the productivity gap widens. Simulations show that the welfare gap widens too. Opening up without sufficient access to external funding thus fails to promote convergence. |
| 主题 | International Trade and Regional Economics
|
| 关键词 | Convergence
Financial constraints
Productivity gap
Technology adoption
Trade liberalization
|
| URL | https://cepr.org/publications/dp8942
|
| 来源智库 | Centre for Economic Policy Research (United Kingdom)
|
| 资源类型 | 智库出版物
|
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/537780
|
推荐引用方式
GB/T 7714 |
Monika Schnitzer. DP8942 Trade liberalization and credit constraints: Why opening up may fail to promote convergence. 2012.
|
除非特别说明，本系统中所有内容都受版权保护，并保留所有权利。
