... competition than under monopolistic competition. Empirical evidence from Chilean manufacturers supports our theoretical conclusions. Practical implications During economic development, the reallocation of production factors from unskilled labor-intensive to skilled labor-intensive industries raises...

... improvements. Second, this study uses a monopolistic competition model that shows how benefits or losses from foreign productivity changes are distributed within domestic economy. Findings First of all, this study shows that a region’s productivity improvement is beneficial for the region itself as well...