Quotation Teteryatnikova, Mariya. 2018. R&D in trade networks: The role of asymmetry. International Journal of Industrial Organization. 61 307-350.


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Abstract

This paper argues that asymmetry in countries’ trade exposure is an important determinant of firms’ R&D, productivity and countries’ welfare. We model a choice of R&D in a given trade network focusing on asymmetric hub-and-spoke networks and symmetric networks. We find that R&D, productivity and total surplus are highest in a hub economy and lowest in a spoke, while intermediate levels are exhibited by countries in a symmetric network. Thus, regional/preferential trade agreements, resulting in asymmetric trade networks, benefit hubs but harm spokes. By contrast, multilateral trade agreements, resulting in a complete network, generate equal R&D and welfare benefits for all countries.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal International Journal of Industrial Organization
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new FIN-A, STRAT-B, VW-B, WH-B
Language English
Title R&D in trade networks: The role of asymmetry
Volume 61
Year 2018
Page from 307
Page to 350
Reviewed? Y
URL https://www.sciencedirect.com/science/article/pii/S0167718718300833?via%3Dihub
DOI https://doi.org/10.1016/j.ijindorg.2018.07.010
Open Access N

Associations

People
Teteryatnikova, Mariya (Details)
Organization
Institute for Economic Policy and Industrial Economics IN (Details)
Research areas (ÖSTAT Classification 'Statistik Austria')
1152 Game theory (Details)
5370 Industrial economics (Details)
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