Nocke, Volker; Yeaple, Stephen R - C.E.P.R. Discussion Papers - 2008
We develop a theory of multiproduct firms to analyze the effects of globalization on the distributions of firm size …, scope, and productivity. In the model, firms are heterogeneous in how well they cope with expanding their product range. The …-discount puzzle" found in the data. Globalization induces a merger wave that leads to an improvement in average productivity. This …