Showing 1 - 10 of 21
The multinational firm (MNF) is introduced as the intersection between trade theory and the theory of the firm. I show that economies of scale associated with various knowledge inputs have made it possible for firms to grow large through internationalization and, once large, staying competitive...
Persistent link: https://www.econbiz.de/10011019068
The paper estimates the causal effect of trade liberalisation on aggregate productivity through mechanisms related to firm selection. The construction of a bridge in 2000 across the Öresund Strait linking Copenhagen with Malmö, Sweden's third largest city, provided a natural experiment with...
Persistent link: https://www.econbiz.de/10005025458
Recent theoretical analysis suggests that a reduction in the cost of exporting increases the degree of assortative matching between workers and firms in export-oriented industries. Changes that reduce the cost of imports have an ambiguous impact on matching. We combine detailed Swedish matched...
Persistent link: https://www.econbiz.de/10010542070
Recent empirical evidence suggests that prices for some goods and services are higher in larger markets. This paper provides a demand-side explanation for this phenomenon when firms can choose how much to differentiate their products in a model of monopolistic competition with horizontal product...
Persistent link: https://www.econbiz.de/10009251247
The theory of the firm suggests that firms can respond to poor contract enforcement by vertically integrating their production process. The purpose of this paper is to examine whether firms' integration opportunities affect the way institutions determine international trade patterns. We find...
Persistent link: https://www.econbiz.de/10009251249
Persistent link: https://www.econbiz.de/10005671122
These notes discuss some of the main results and models from the theory of international trade under imperfect competition. They are necessairy both selective and superficial. Multinationals are conspicuous by their absence, and the reader is referred to Markusen (1995) for a recent survey. Up...
Persistent link: https://www.econbiz.de/10005780372
This paper analyses the effect on agglomeration tendencies of allowing firms to become multi-region firms in a standard model of trade and location. More specifically, we introduce horizontal and vertical multi-region firms into the core-periphery (CP) model developed by Krugman (1991). The...
Persistent link: https://www.econbiz.de/10005486492
This paper contributes to research endogenizing multinational firms in general equilibrium trade Models.
Persistent link: https://www.econbiz.de/10005486500
We study the effects of parallel trade in the pharmaceutical industry. We develop a model in which an original manufacturer competes in its home market with parallel-importing firms. The theoretical analysis results in two key hypotheses. First, if the potential for parallel imports is...
Persistent link: https://www.econbiz.de/10005639294