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We develop a new model of multi-product firms which invest to improve both the quality of their individual products and of their brand.  Because of flexible manufacturing, products closer to firms' core competence have lower costs, so they produce more of them, and also have higher incentives...
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"Recent developments in trade theory, especially research on multi-product firms, have not been matched by similar progress on the empirical front. This paper aims to fill this gap by presenting a novel set of stylized facts on firm-product dynamics observed during an export boom. This exercise...
Persistent link: https://www.econbiz.de/10003758881
Relying on firm-level data from Statistik Industri this note analyzes the evolution of productivity dynamics of Indonesian firms over the past 20 years (1990-2009). Economy-wide and sectoral productivity changes are decomposed into their two main components: changes due to the evolution of...
Persistent link: https://www.econbiz.de/10012576968
Policy attitude towards trade integration and foreign direct investment (FDI) is often a controversial yet popular subject. This note presents evidences from recent policy researches that arguing that engaging in an open trade and investment regime have brought productivity gains which is key...
Persistent link: https://www.econbiz.de/10012577733
We present a new model of multi-product firms (MPFs) and flexible manufacturing and explore its implications in partial and general equilibrium. International trade integration affects the scale and scope of MPFs through a competition effect and a demand effect. We demonstrate how MPFs adjust in...
Persistent link: https://www.econbiz.de/10010293792
We present a new model of multi-product firms (MPFs) and flexible manufacturing, and explore its implications in partial and general oligopolistic equilibrium. Globalization affects the scale and scope (or intensive margin and intra-firm extensive margin) of MPFs through a competition effect and...
Persistent link: https://www.econbiz.de/10014215084
This paper reviews alternative approaches to measuring an economy''s cost competitiveness and proposes some new measures inspired by the economic theory of index numbers. The indices provide a theoretical benchmark for estimated real effective exchange rates, but differ from standard measures in...
Persistent link: https://www.econbiz.de/10014400395