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has been cited by the following article:

• TITLE: The Relationship among Cost-Reducing R&D Investment, Occupational Choice, and Trade

  AUTHORS: Tadashi Morita

  KEYWORDS: R&D, Occupational Choice, Trade, Oligopoly

  JOURNAL NAME: Theoretical Economics Letters, Vol.4 No.9, December 16, 2014

  ABSTRACT: In this paper, I construct a two-country model in which oligopolistic firms export goods and undertake cost-reducing R&D investment. In this model, abilities of individual to become skilled worker are heterogeneous and they choose to become skilled worker or unskilled worker. Individuals have to incur the cost of education in order to become skilled workers. Each country imposes tariffs. When the cost of education is sufficiently high, a decrease in the tariff rate decreases the level of R&D investment. However, when the cost of education is sufficiently small, a decrease in the tariff rate increases the level of R&D investment.