Bloom, Nick, Romer, Paul, Terry, Stephen and Van Reenen, John ORCID: 0000-0001-9153-2907 (2020) Trapped factors and China’s impact on global growth. Economic Journal. ISSN 0013-0133
Text (Trapped factors and China’s impact on global growth)
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Abstract
After a recent increase in Chinese import competition, European firms increased innovation. We present and rationalise these patterns using “trapped factors” at the micro level within a stylised equilibrium model of product-cycle trade and growth. Trade integration of the magnitude observed between the OECD and low-wage nations as a whole can considerably increase the long-run growth rate and welfare. In the short-run exposed firms devote trapped factors to increased innovation, leading both to increased innovation at these individual firms as well as to a small amount of extra transitional growth overall. China accounts for half of the dynamic trade gains
Item Type: | Article |
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Official URL: | https://academic.oup.com/ej |
Additional Information: | © 2020 Royal Economic Society |
Divisions: | Economics Centre for Economic Performance |
Subjects: | H Social Sciences > HG Finance H Social Sciences > HF Commerce |
JEL classification: | C - Mathematical and Quantitative Methods > C2 - Econometric Methods: Single Equation Models; Single Variables > C23 - Models with Panel Data D - Microeconomics > D9 - Intertemporal Choice and Growth > D92 - Intertemporal Firm Choice and Growth, Investment, or Financing E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Employment, and Investment > E22 - Capital; Investment (including Inventories); Capacity |
Date Deposited: | 05 Jun 2020 14:09 |
Last Modified: | 12 Dec 2024 02:11 |
URI: | http://eprints.lse.ac.uk/id/eprint/105013 |
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