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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 …
Persistent link: https://www.econbiz.de/10012456244
In a general equilibrium product-cycle model, lower trade barriers increase Southern purchasing power, which lifts long-run growth by increasing the profit from innovation. In the short run, factors of production must be reallocated inside firms, which lowers the opportunity cost of innovation,...
Persistent link: https://www.econbiz.de/10012458713
This paper provides an overview of recent trends in the U.S. basic industries. It first documents the dramatic fall in their shares of domestic employment and global production. It then considers explanations for these industries' relative -- and, in some instances, absolute -- decline. Those...
Persistent link: https://www.econbiz.de/10012476880
may then force managers to improve the productivity of the firm in order to ensure survival. While this hypothesis has … competition shocks. We find that import competition leads to productivity increases in family-managed firms that are initially … unproductive. Productivity improvements are driven by family management as opposed to family ownership or non-managing family …
Persistent link: https://www.econbiz.de/10012479494
South Africa has undergone a remarkable transformation since its democratic transition in 1994, but economic growth and employment generation have been disappointing. Most worryingly, unemployment is currently among the highest in the world. While the proximate cause of high unemployment is that...
Persistent link: https://www.econbiz.de/10012466097
levels. In emerging countries, trade liberalization appears to spur productivity and innovation. In developed countries …
Persistent link: https://www.econbiz.de/10012453005
We study how increased import competition affects the evolution of firm-product technical efficiencies in the small open economy of Belgium. We observe quarterly firm-product data at the 8-digit level on quantities sold and firm-level labor, capital, and intermediate inputs from 1997 to 2007, a...
Persistent link: https://www.econbiz.de/10012455045
We propose a framework to evaluate the potential impact of international competition on firm performance and highlight two points. First, it is important to consider effects on productive efficiency and market power in an integrated framework. The popular concept of (revenue) TFP combines both...
Persistent link: https://www.econbiz.de/10012456679
James A. Schmitz (2005) documents, in a well-known case study, a dramatic rise in productivity in the U.S. and Canadian … productivity to a change in work practices in the industry, as old negotiated union work rules were abandoned or modified. This … research formalizes a mechanism through which a rise in competition can lead to increased productivity in the iron-ore industry …
Persistent link: https://www.econbiz.de/10012459105
Since the early 1980s, the U.S. economy has experienced a growing wage differential: high-skilled workers have claimed an increasing share of available income, while low-skilled workers have seen an absolute decline in real wages. How and why this disparity has arisen is a matter of ongoing...
Persistent link: https://www.econbiz.de/10001433753