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A lab-equipment model of growth with heterogeneous firms and asymmetric countries

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  • Naito, Takumi

Abstract

By extending the Rivera-Batiz–Romer lab-equipment model of growth with expanding input varieties to include both heterogeneous firms and asymmetric countries, we show that even unilateral trade liberalization always raises both countries’ long-run growth and welfare.

Suggested Citation

  • Naito, Takumi, 2019. "A lab-equipment model of growth with heterogeneous firms and asymmetric countries," Economics Letters, Elsevier, vol. 181(C), pages 33-36.
    • Handle: RePEc:eee:ecolet:v:181:y:2019:i:c:p:33-36
    DOI: 10.1016/j.econlet.2019.04.005
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    Cited by:

    1. Takumi Naito, 2021. "Can The Optimal Tariff Be Zero For A Growing Large Country?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 62(3), pages 1237-1280, August.

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    More about this item

    Keywords

    Lab-equipment model; Heterogeneous firms; Asymmetric countries; Unilateral trade liberalization; Endogenous technological change;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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