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 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.
Author: | Thierry Mayer, Marc J. Melitz, Gianmarco I. P. OttavianoORCiDGND |
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URN: | urn:nbn:de:hebis:30:3-424217 |
URL: | https://ssrn.com/abstract=2875415 |
DOI: | https://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 |
Page Number: | 53 |
HeBIS-PPN: | 397535503 |
Institutes: | Wirtschaftswissenschaften / Wirtschaftswissenschaften |
Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS) | |
Dewey Decimal Classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
3 Sozialwissenschaften / 38 Handel, Kommunikation, Verkehr / 380 Handel, Kommunikation, Verkehr | |
Sammlungen: | Universitätspublikationen |
Licence (German): | Deutsches Urheberrecht |