Innovation plays a key role in economic growth. In this paper, we investigate the effects of intermediate input tariff … reduction on the innovation activities of domestic firms. Input tariff reduction has two opposite effects on the innovation … decision of a firm: it may promote innovation because the cost of innovation activities decreases, but it may also result in a …

from those on final consumer goods. To this end, the paper develops a three-country model with rigorous trade theory micro …-foundations and some of the most common New Keynesian features and adapts it to the US, China, and the rest of the world. The results … the US bilateral trade balance with China but only a short-term impact on the overall trade balance …

the characteristics of tariff structures of China and the U.S. in recent years and measures the impact of the Sino … China and the U.S. from 2000 to 2014 and makes a comparison between two countries' tariff structures. The second part … applying standard trade theory, the result indicates that either unilateral imposition of additional tariffs or bilateral …