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Feenstra and Ma (2008) develop a monopolistic competition model where firms choose their optimal product scope by balancing the profits from a new variety against the costs of 'cannibalizing' sales of existing varieties. While more productive firms always have a higher market share, there is no...
Persistent link: https://www.econbiz.de/10009682079
We examine how foreign ownership of a firm affects the variety of goods that the firm exports and the number of countries it trades with. We construct a simple theoretical model of how foreign ownership may affect these extensive margins of exports and take this model to data from Germany, one...
Persistent link: https://www.econbiz.de/10009762493
We use newly available representative panel data for manufacturing enterprises in West and East Germany to investigate … subsidized, and that exports and subsidies are positively related. Using a matching approach to investigate the causal effect of …. -- Subsidies ; export ; Germany ; enterprise panel data …
Persistent link: https://www.econbiz.de/10003800468
This paper uses an oligopoly model with heterogeneous firms to examine how an industry adjusts to rising import competition. The model predicts that in the short run the least efficient firms in the industry become inactive, surviving firms face a fall in output, mark-ups and profits, and the...
Persistent link: https://www.econbiz.de/10003878218