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Subsidizing firm entry in open economies
Pflüger, Michael; Südekum, Jens - 2009
Entrepreneurs who decide to enter an industry are faced with different levels of effective entry costs in different countries. These costs are heavily influenced by economic policy. What is not well understood is how international trade affects the government incentive to impact on entry costs,...
Persistent link: https://www.econbiz.de/10003894876
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Business conditions and default risks across countries
Pflüger, Michael; Russek, Stephan - 2011
The risk of default that business firms face is very significant and differs widely across countries. This paper explores the links between countries' business conditions and international trade embedment and the default risk at the country level from a theoretical point of view. Our main...
Persistent link: https://www.econbiz.de/10009232302
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Trade and industrial policies with heterogeneous firms : the role of country asymmetries
Pflüger, Michael; Russek, Stephan - 2010
This paper explores the role of country asymmetries for trade and industrial policies with heterogeneous firms. Our analysis delivers a number of novel results. First, trade policies, infrastructure policies and industrial policies which improve the business conditions in one country have...
Persistent link: https://www.econbiz.de/10009314284
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Globalization and strategic research investments
Bohnstedt, Anna; Schwarz, Christian; Südekum, Jens - 2010
We develop a general equilibrium model of international trade with heterogeneous firms, where countries can invest into basic research to improve their technological potential. These research investments tighten firm selection and raise the average productivity of firms in the market, thereby...
Persistent link: https://www.econbiz.de/10009315295
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Heterogeneous firms, trade, and economic policy : insights from a simple two-sector model
Pflüger, Michael; Russek, Stephan - 2011
consumers has inspired the development of a new brand of trade theory, the theory of heterogeneous firms and trade. The …
Persistent link: https://www.econbiz.de/10009519889
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An evaluation of the employment effects of barriers to outsourcing
Bandyopadhyay, Subhayu; Marjit, Sugata; Yang, Lei - 2011
Barriers to outsourcing that are being currently implemented in the US effectively tax its companies who "export" jobs … through outsourcing. The objective is to raise domestic employment. Given that many of the important international markets … oligopolistic context. We find that while an outsourcing tax favors domestic workers by causing firms to switch to a greater use of …
Persistent link: https://www.econbiz.de/10009124754
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On the organizational structure of multinational firms : which sourcing mode for which input?
Südekum, Jens; Nowak, Verena Nina; Schwarz, Christian - 2012
organizational decision is driven by two countervailing effects: the ownership rights effect favors outsourcing, while the "indirect … outsourcing of the "less important" supplier is chosen in equilibrium. We also consider an open economy setup where the producer … decides whether to offshore inputs. -- multinational firms ; outsourcing ; intra-firm trade ; property rights approach …
Persistent link: https://www.econbiz.de/10009539235
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Cross-border mergers and national champions in an integrating economy
Südekum, Jens (contributor) - 2006
We introduce a simple oligopolistic trade model with international transportation costs, and analyze the profitability and the social desirability of national vs. international mergers in relation to three different issues, (i) the level of trade freeness, (ii) the possibility of rent...
Persistent link: https://www.econbiz.de/10003355552
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Efficiency wages in Cournot-oligopoly
De Pinto, Marco; Goerke, Laszlo - 2019
In a Cournot-oligopoly with free but costly entry and business stealing, output per firm is too low and the number of … distortions occurring in oligopoly. Specifically, excessive entry is aggravated and the welfare loss due to market power rises. …
Persistent link: https://www.econbiz.de/10012015904
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Global sourcing of complex production processes
Schwarz, Christian; Südekum, Jens - 2010
We develop a theory of a firm in an environment with incomplete contracts. The firm's headquarter decides on the …. -- multinational firms ; outsourcing ; intra-firm trade ; offshoring ; vertical FDI …
Persistent link: https://www.econbiz.de/10009300131