Endogenous transport price, R&D spillovers, and trade
Endogenous transport price, R&D spillovers, and trade
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DOI:
10.1111/twec.13189
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发表时间:
2020-08
期刊:
影响因子:
--
通讯作者:
Kazuhiro Takauchi;Tomomichi Mizuno
中科院分区:
文献类型:
--
作者:
Kazuhiro Takauchi;Tomomichi Mizuno
Efficient distribution has a considerable influence on the sales volume of firms, and thus affects the firms' research and development (R&D) activities. This paper analyzes the relationship between competition in the transport sector and R&D of firms using the transportation services. We consider a two-region reciprocal market in which firms invest in cost-reducing R&D and use carriers that engage in price competition to supply their products to the foreign market. We show that, corresponding to the degree of R&D spillover, a transport cost (or price) reduction due to an increase in the number of carriers can increase or decrease the firms' R&D investments. This result is consistent with the finding in previous studies that trade liberalization can hinder R&D. Because inefficient firms lead to high prices in the market, an increase in the number of carriers may reduce consumer surplus. We further discuss a case in which firms have monopsony power in transportation services and show that our main results are robust to the extension.