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Using a unique database on all Japanese manufacturing plants in the United States, we examine the relationship between plant size and growth for these foreign-owned plants. These plants average sizes are three times larger than comparable U.S. plants and experienced 30 percent growth from 1987...
Persistent link: https://www.econbiz.de/10005830370
Over the past decades, the steel industry has been protected by a wide variety of trade policies, both tariff- and quota-based. We exploit this extensive heterogeneity in trade protection to examine the well-established theoretical literature predicting nonequivalent effects of tariffs and...
Persistent link: https://www.econbiz.de/10008680931
This paper studies the extensive and intensive margins of firms' global sourcing decisions. We develop a quantifiable multi-country sourcing model in which heterogeneous firms self-select into importing based on their productivity and country-specific variables. The model delivers a simple...
Persistent link: https://www.econbiz.de/10011103503
A primary function of trade policy is to restrict imports to benefit the targeted domestic sector. However, a well-established theoretical literature highlights that the form of trade policy (e.g., quotas versus tariffs) can have a significant impact on how much trade policy affects firms'...
Persistent link: https://www.econbiz.de/10005774569
We develop an assignment theory to analyze the volume and composition of foreign direct investment (FDI). Firms conduct … FDI by either engaging in greenfield investment or in cross-border acquisitions. Cross-border acquisitions involve firms … these modes varies with firm and country characteristics. Firms engaging in greenfield investment are systematically more …
Persistent link: https://www.econbiz.de/10005088966
I develop a new theory of marketing costs and introduce it into a model of trade with product differentiation and firm …
Persistent link: https://www.econbiz.de/10005828418
This paper presents theory and evidence on horizontal industry structure, focusing on situations where plant …
Persistent link: https://www.econbiz.de/10005828451
We determine empirically how the Big Three automakers accommodate shocks to demand. They have the capability to change prices, alter labor inputs through temporary layoffs and overtime, or adjust inventories. These adjustments are interrelated, non-convex, and dynamic in nature. Combining weekly...
Persistent link: https://www.econbiz.de/10005828581
Firms' decisions about which goods to produce are often made at a more disaggregate level than the data observed by empirical researchers. When products differ according to production technique or the way in which they enter demand, this data aggregation problem introduces a bias into standard...
Persistent link: https://www.econbiz.de/10005828755
We develop a theory of multiproduct firms to analyze the effects of globalization on the distributions of firm size …
Persistent link: https://www.econbiz.de/10005828874