A Global View of Creative Destruction / Chang-Tai Hsieh, Peter J. Klenow, Ishan B. Nath.

Format:

Book

Author/Creator:

Hsieh, Chang-Tai.

Contributor:

National Bureau of Economic Research.

Klenow, Peter J.

Nath, Ishan B.

Series:

Working Paper Series (National Bureau of Economic Research) no. w26461.

NBER working paper series no. w26461

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2019.

Summary:

In the wake of the U.S.-Canada Free Trade Agreement, both the U.S. and Canada experienced a sustained increase in job reallocation, including firms moving into exporting. The change involved big firms as much as small firms. To mimic these patterns,we formulate a model of innovation by both domestic and foreign firms. In the model, trade liberalization quickens the pace of creative destruction, thereby speeding the flow of technology across countries. The resulting dynamic gains from trade liberalization are an order of magnitude larger than the gains in a standard static model.

Notes:

Print version record

November 2019.