Product mix and firm productivity responses to trade competition

owards their best performing products; and also extend the range of products sold to that market. We develop a theoretical model of multiproduct firms and derive the specific demand and cost conditions needed to generate
owards their best performing products; and also extend the range of products sold to that market. We develop a theoretical model of multiproduct firms and derive the specific demand and cost conditions needed to generate these product-mix reallocations. Our theoretical model highlights how the increased competition from demand shocks in export markets - and the induced product mix reallocations - induce productivity changes within the firm. We then empirically test for this connection between the demand shocks and the productivity of multi-product firms exporting to those destinations. We find that the effect of those demand shocks on productivity are substantial - and explain an important share of aggregate productivity fluctuations for French manufacturing.
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Metadaten
Author:Thierry Mayer, Marc J. Melitz, Gianmarco I. P. Ottaviano
URN:urn:nbn:de:hebis:30:3-424217
URL:https://ssrn.com/abstract=2875415
DOI:http://dx.doi.org/10.2139/ssrn.2875415
Parent Title (English):Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 562
Series (Serial Number):CFS working paper series (562)
Publisher:Center for Financial Studies
Place of publication:Frankfurt, M.
Document Type:Working Paper
Language:English
Year of Completion:2016
Year of first Publication:2016
Publishing Institution:Universitätsbibliothek Johann Christian Senckenberg
Release Date:2016/12/06
Issue:June 2016
Pagenumber:53
HeBIS PPN:397535503
Institutes:Wirtschaftswissenschaften
Center for Financial Studies (CFS)
Dewey Decimal Classification:330 Wirtschaft
380 Handel, Kommunikation, Verkehr
Sammlungen:Universitätspublikationen
Licence (German):License Logo Veröffentlichungsvertrag für Publikationen

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