Globalization and multiproduct firms

Vorschau

PDF
Nocke_&_Yeaple_13-10.pdf - Veröffentlichte Version
Download (345kB)

URL:	https://madoc.bib.uni-mannheim.de/33985
URN:	urn:nbn:de:bsz:180-madoc-339850
Dokumenttyp:	Arbeitspapier
Erscheinungsjahr:	2013
Titel einer Zeitschrift oder einer Reihe:	Working Paper Series
Band/Volume:	13-10
Ort der Veröffentlichung:	Mannheim
Sprache der Veröffentlichung:	Englisch
Einrichtung:	Fakultät für Rechtswissenschaft und Volkswirtschaftslehre > VWL, Mikroökonomik (Nocke 2009-)
MADOC-Schriftenreihe:	Department of Economics > Working Paper Series
Fachgebiet:	330 Wirtschaft
Fachklassifikation:	JEL: F12 , F15,
Freie Schlagwörter (Englisch):	multiproduct firms , trade liberalization , diversification discount , firm heterogeneity , productivity
Abstract:	We present an international trade model with multiproduct firms. Firms are heterogeneously endowed with two types of capabilities that jointly determine the trade-off within firms between managing a large portfolio of products and producing at low marginal cost. The model can explain many of the documented cross- sectional correlations in firm performance measures, including why larger firms are more productive and more diversified, and yet more diversified firms trade at a discount. Globalization is shown to induce heterogeneous responses across firms in terms of scope and productivity, some of which are consistent with existing empirical work, while others are potentially testable.