GLOBALIZATION AND MULTIPRODUCT FIRMS

By Volker Nocke, S. Yeaple. 2014

110 citations recorded by the source corpus.

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.

Subfields: Economics and Econometrics, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/8900d70f985cec752e31c69c94a16a5e0912d4ad

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

1. Nicolas Schutz
2. Volker Nocke
3. Joel Stiebale
4. Seungrae Lee

In Strategy and Management

1. Nicolas Schutz
2. Volker Nocke
3. Joel Stiebale
4. Seungrae Lee

Citations in the corpus

• Multiproduct-Firm Oligopoly: An Aggregative Games Approach (2018, methodology): “Finally, we re-visit classic questions in static and dynamic merger analysis, and study the impact of a trade liberalization on the inter- and intra-firm size distributions, productivity and welfare.”