This paper offers a unified framework to explore both the static and dynamic welfare effects of trade and multinational production MP in the presence of firm-specific productivity heterogeneity. The model captures the dynamic effects by allowing for RD spillovers between firms in a framework of...

A major international transmission channel of productivity increases is trade in intermediate products and services. This paper analyses international spillovers at the industry level and for the first time investigates effects from the services sector in this framework. The analysis makes use...