Author: Publisher:
ISBN: 9789058926494
Category :
Languages : en
Pages : 0
Book Description
Productivity and Strategies of Multiproduct Firms
Author: Scale, Scope, and the International Expansion Strategies of Multiproduct Firms
Author: Stephen R. YeaplePublisher:
ISBN:
Category : Economics
Languages : en
Pages : 0
Book Description
A growing literature seeks to understand how the characteristics of firms shape the manner in which they serve foreign markets. We consider an environment in which multiproduct firms can sell their products in multiple countries from multiple locations. We show that there are strong empirical regularities in the expansion strategies of U.S. multinational firms and that simple extensions of standard models do not explain these regularities. We augment these models by introducing a framework in which organizational capital is a scarce input within the firm that has to be allocated to particular products and production locations and show that the standard model, so amended, is consistent with the data. We then use the model to analyze the productivity effect of changes in international frictions both within and across firms.
Scale, Scope, and the International Expansion Strategies of Multiproduct Firms
Author: Stephen Ross YeaplePublisher:
ISBN:
Category : Economics
Languages : en
Pages :
Book Description
A growing literature seeks to understand how the characteristics of firms shape the manner in which they serve foreign markets. We consider an environment in which multiproduct firms can sell their products in multiple countries from multiple locations. We show that there are strong empirical regularities in the expansion strategies of U.S. multinational firms and that simple extensions of standard models do not explain these regularities. We augment these models by introducing a framework in which organizational capital is a scarce input within the firm that has to be allocated to particular products and production locations and show that the standard model, so amended, is consistent with the data. We then use the model to analyze the productivity effect of changes in international frictions both within and across firms.
Internationalization Strategies of Multi-product Firms
Author: Daniel BaumgartenPublisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
High-performance firms typically have two features in common: i) they produce in more than one country and ii) they produce more than one product. In this paper, we analyze the internationalization strategies of multi-product firms at the product-level. We find that the most productive firms sell core varieties via foreign direct investment (FDI) and export products with intermediate productivity. Shocks to trade costs and technology affect the endogenous decision to export or produce abroad at the product-level and, in turn, the relative productivity between parents and affiliates.
A Theory of the Multiproduct Firm
Author: Kenneth LaitinenPublisher: North Holland
ISBN:
Category : Business & Economics
Languages : en
Pages : 256
Book Description
Multi-product Firms' Productivity and Export Behavior
Author: Jangho ChoiPublisher:
ISBN:
Category : Exports
Languages : en
Pages : 80
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.
Scale, Scope, and Tne International Expansion Strategies of Multiproduct Firms
Author: Stephen Ross YeapleProduct Diversification of U.S. Manufacturing Firms
Author: Hsiao-shan YangPublisher:
ISBN:
Category :
Languages : en
Pages : 126
Book Description
This dissertation consists of two studies. One is about the level of product diversification of multiproduct firms. The other is about the product switching decision of multiproduct firms. Most of the existing studies rely on economies of scope or strategic considerations to explain why firms produce multiple products. However, only a few explain why the level of product diversification varies across multiproduct firms. I extend the Dixit-Stiglitz monopolistic competitive model to analyze product diversification of heterogeneous multiproduct firms, focusing on the role of firm-specific productivity. The model shows that the firm's level of product diversification is determined by and positively related to its productivity at the equilibrium. Using data from the Thomas Register of American Manufacturers and Compustat, I test the prediction of the theoretical model.^To overcome simultaneity bias associated with productivity, I implement a IV estimation where I use the number of product varieties offered by the upstream industries of a firm as the instrumental variable to identify exogenous changes in the firm's productivity. This IV strategy is motivated by Romer (1990) who argues that technological changes can take the form of increases in the variety of intermediate inputs. I find strong and robust empirical evidence consistent with the prediction of the theoretical model--firm productivity is a causal factor for product diversification. To understand product switching decision, I further expand the Dixit-Stiglitz model to allow for product-specific shocks. In this model, firm-specific productivity determines the range of products, and product-specific relative consumer's preference determines the composition of products offered by the firm.^This shows that, in the absence of productivity shocks, product-specific shocks induce product switching--adding the product experienced a positive demand shock and dropping the product undergone a negative shock from its original product portfolio. Assuming that a product experiences positive shocks before the market shakeout and negative shocks after shakeout as it goes through its life cycle, this result suggests that the incidence of product switching is positively correlated with the proportion of the firm's products that are in the early (growing) stage of their life cycles. This prediction is confirmed in the empirical estimation. In addition to product-specific demand shocks, I also find that larger and older firms as well as firms facing greater market competition are more likely to switch products.
The Economics of Firm Productivity
Author: Carlo AltomontePublisher: Cambridge University Press
ISBN: 1108489230
Category : Business & Economics
Languages : en
Pages : 243
Book Description
Provides empirical evidence on how firm-level data can help governments strike the right policy balance and ultimately achieving higher aggregate productivity.
The Theory of Oligopoly with Multi-Product Firms
Author: Koji OkuguchiPublisher: Springer Science & Business Media
ISBN: 3642601693
Category : Business & Economics
Languages : en
Pages : 273
Book Description
In the mid 1960's both authors undertook independent works in oligopoly.and game theory. However, it was not until 1983 that they formally met. Since then, they have continued meeting either in Budapest or Tokyo. Their collaboration has resulted in numerous publications as well as in this work. Essentially, this book has two origins. First, it originated in previous results, either published or circulated in mimeograph form. Finely sifting their results, the authors constructed a concise reinterpretation of their achievement to date. However, this unifying process led to the second origin. Reconsideration, particularly in this comprehensive approach, generated new results. This was especially true in the analysis of the existence, uniqueness and global stability of the Cournot-Nash equilibrium for oligopoly with multi-product flrms, and for several modilled Cournot and related models. This book should be ideal for graduate students in economics or mathematics. However, as the authors have firmly grounded their ideas in the formal language of mathematics, the student should possess some background in calculus, linear algebra, and ordinary differential and difference equations. Additionally, the book should be useful to researchers in oligopoly and game theory as well as to mathematically oriented economists. The methodology developed for analyzing the existence and stability of oligopoly equilibrium should prove useful also in theoretical analysis of other economic models. Weare both very grateful to Professor Wilhelm Krelle for his careful review and helpful suggestions. In addition, Koji Okuguchi wishes to thank Professors W.