Multi-product Firms and Exporting PDF Download

Author: Robert J. R. Elliott
Publisher:
ISBN:
Category : Exports
Languages : en
Pages : 48

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Author: Jangho Choi
Publisher:
ISBN:
Category : Exports
Languages : en
Pages : 80

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Book Description
The objective of this dissertation is to examine multi-product firms' productivity and export behavior. More specifically, this dissertation estimates productivity of firms that produce and sell multiple products, and the role of productivity in such firms' export behavior. In doing so, this dissertation develops a firm-level gravity approach to test whether multi-product firms self select to export or learn from exporting. In the first of part of this dissertation, I examine whether intra-firm resource reallocation of a multi-product firm affects its Total Factor Productivity (TFP). By extending earlier approaches, I estimate unbiased and consistent TFP of multi-product firms using a revenue-based production function. I find that TFP is more likely to be overestimated when multi-product firms' internalized demand linkage is not taken into account. I also find that multi-product firms' TFP decreases as it expands the number of products produced, but specialization of production does not play a role in TFP. In the second part, I present a theoretical framework to derive a firm-level gravity equation. By equating the total demand and total production of multi-product firms, I derive a firm-level gravity equation where export flows from firms to consumers is proportional to the product of economic size of firms, consuming power of a representative consumer, and trade resistance between origin and destination. Using the firm-level gravity equation, I test the hypothesis that high productivity firms self select to export and that the size of export flows is determined by productivity. I find that the economic size of exporting firms and the consuming power of a representative consumer have a positive and statistically significant effect on exports, while trade resistance such as tariff and distance have the opposite effect. I also find that the estimated coefficients of the firm-level gravity equation tend to be smaller than those of the traditional country-level gravity equation. In the final part of the dissertation, I test whether or not previous export experience improves the productivity of firms. Again, the estimable equation is derived from the equilibrium condition presented in the second part. My result confirms that previous export experience indeed improves productivity of exporting firms, but tariffs have the opposite effect. The results of this dissertation reveal the economic behavior of multi-product firms, which usually account for a large of economic activity and output in many countries. Understanding such firms' productivity and export behavior can offer strategies for economic growth and development. Empirical findings of this dissertation suggest policy options including lowering tariffs, and improving infrastructure that can lower transportation costs. Further examination of product range and specialization of production can offer strategies to source exports from small and midsize firms.

Author: Daniel Lederman
Publisher: World Bank Publications
ISBN: 0821384910
Category : Business & Economics
Languages : en
Pages : 153

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Does what economies export matter for development? If so, can industrial policies improve on the export basket generated by the market? This book approaches these questions from a variety of conceptual and policy viewpoints. Reviewing the theoretical arguments in favor of industrial policies, the authors first ask whether existing indicators allow policy makers to identify growth-promoting sectors with confidence. To this end, they assess, and ultimately cast doubt upon, the reliability of many popular indicators advocated by proponents of industrial policy. Second, and central to their critique, the authors document extraordinary differences in the performance of countries exporting seemingly identical products, be they natural resources or 'high-tech' goods. Further, they argue that globalization has so fragmented the production process that even talking about exported goods as opposed to tasks may be misleading. Reviewing evidence from history and from around the world, the authors conclude that policy makers should focus less on what is produced, and more on how it is produced. They analyze alternative approaches to picking winners but conclude by favoring 'horizontal-ish' policies--for instance, those that build human capital or foment innovation in existing and future products—that only incidentally favor some sectors over others.

Author: Dongyeol Lee
Publisher: International Monetary Fund
ISBN: 1498315658
Category : Business & Economics
Languages : en
Pages : 24

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Export structure is less diversified in low-income countries (LICs) and especially small states that face resource constraints and small economic size. This paper explores the potential linkages between export structure and economic growth and its volatility in LICs and small states, using a range of indices of export concentration differing in the coverage of industries. The empirical analysis finds that export diversification may promote economic growth and reduce economic volatility in these countries. Furthermore, the analysis demonstrates that the economic benefits of export diversification differ by country size and income level—there are bigger benefits for relatively larger and poorer countries within the group of LICs and small states.

Author: World Bank
Publisher: World Bank Publications
ISBN: 1464814953
Category : Business & Economics
Languages : en
Pages : 511

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Book Description
Global value chains (GVCs) powered the surge of international trade after 1990 and now account for almost half of all trade. This shift enabled an unprecedented economic convergence: poor countries grew rapidly and began to catch up with richer countries. Since the 2008 global financial crisis, however, the growth of trade has been sluggish and the expansion of GVCs has stalled. Meanwhile, serious threats have emerged to the model of trade-led growth. New technologies could draw production closer to the consumer and reduce the demand for labor. And trade conflicts among large countries could lead to a retrenchment or a segmentation of GVCs. World Development Report 2020: Trading for Development in the Age of Global Value Chains examines whether there is still a path to development through GVCs and trade. It concludes that technological change is, at this stage, more a boon than a curse. GVCs can continue to boost growth, create better jobs, and reduce poverty provided that developing countries implement deeper reforms to promote GVC participation; industrial countries pursue open, predictable policies; and all countries revive multilateral cooperation.

Author: Parisa Kamali
Publisher: International Monetary Fund
ISBN: 1513519875
Category : Business & Economics
Languages : en
Pages : 58

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Book Description
In many countries, a sizable share of international trade is carried out by intermediaries. While large firms tend to export to foreign markets directly, smaller firms typically export via intermediaries (indirect exporting). I document a set of facts that characterize the dynamic nature of indirect exporting using firm-level data from Vietnam and develop a dynamic trade model with both direct and indirect exporting modes and customer accumulation. The model is calibrated to match the dynamic moments of the data. The calibration yields fixed costs of indirect exporting that are less than a third of those of direct exporting, the variable costs of indirect exporting are twice higher, and demand for the indirectly exported products grows more slowly. Decomposing the gains from indirect and direct exporting, I find that 18 percent of the gains from trade in Vietnam are generated by indirect exporters. Finally, I demonstrate that a dynamic model that excludes the indirect exporting channel will overstate the welfare gains associated with trade liberalization by a factor of two.

Author: Jason Katzman
Publisher: Skyhorse Publishing Inc.
ISBN: 1616081112
Category : Business & Economics
Languages : en
Pages : 385

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Book Description
Here is practical advice for anyone who wants to build their business by selling overseas. The International Trade Administration covers key topics such as marketing, legal issues, customs, and more. With real-life examples and a full index, A Basic Guide to Exporting provides expert advice and practical solutions to meet all of your exporting needs.

Author: Banque asiatique de développement
Publisher:
ISBN: 9789287054296
Category : Business logistics
Languages : en
Pages : 0

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Book Description
A radical shift is underway in global value chains as they increasingly move beyond traditional manufacturing processes to services and other intangible assets. Digitization is a leading factor in this transformation, which is being accelerated by the coronavirus disease (COVID-19) pandemic. The Global Value Chain Development Report, the third of a biennial series, explores this shift beyond production. The report shows how the rise of services value chains offers a new path to development and how protectionism and geopolitical tensions, environmental risks, and pandemics are undermining the stability of global value chains and forcing their reorganization geographically. It is co-published by the WTO, the Asian Development Bank, the Research Institute for Global Value Chains at the University of International Business and Economics, the Institute of Developing Economies, and the China Development Research Foundation.

Author: Andrew B. Bernard
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Book Description
This paper examines how country, industry and firm characteristics interact in general equilibrium to determine nations' responses to trade liberalization. When firms possess heterogeneous productivity, countries differ in relative factor abundance and industries vary in factor intensity, falling trade costs induce reallocations of resources both within and across industries and countries. These reallocations generate substantial job turnover in all sectors, spur relatively more creative destruction in comparative advantage industries than comparative disadvantage industries, and magnify ex ante comparative advantage to create additional welfare gains from trade. The relative ascendance of high-productivity firms within industries boosts aggregate productivity and drives down consumer prices. In contrast with the neoclassical model, these price declines dampen and can even reverse the real wage losses of scarce factors as countries liberalize.

Author: World Trade Organization
Publisher: World Trade Organization
ISBN: 9789287041258
Category : Political Science
Languages : en
Pages : 0

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Book Description
This report is about a huge contribution to our deepening understanding of what the global economy really means and how it is changing. The report helpfully distinguishes elements of an economy that are tradable and the large set that are non-tradable. Clearly the tradables set is expanding with the support of enabling technology. The report argues that connectivity in the networks that define the evolving architecture of GVCs is important. This Global Value Chain Development Report is the result of intensive and detailed work in assembling and analyzing data on the structure of economies and on how they are linked. It creates a much clearer picture of evolving patterns of independence. It also presents a much clearer picture of comparative advantage. --Publisher description.