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Recently collected data show that, within any manufacturing industry, vertically integrated firms tend to have larger, higher productivity plants, account for the bulk of sales, and also sell externally most of the inputs they produce. In a weak contracting environment characteristic of...
Persistent link: https://www.econbiz.de/10012458936
Globalization and robotics (globotics) are transforming the world economy at an explosive pace. While much of the …
Persistent link: https://www.econbiz.de/10012479255
Specialization alters the incidence of manufacturing trade costs to buyers and sellers, with pro-and anti-globalizing effects on 76 countries from 1990-2002. The structural gravity model yields measures of Constructed Home Bias (the ratio of predicted local trade to predicted frictionless local...
Persistent link: https://www.econbiz.de/10012462358
We develop a theory of multiproduct firms to analyze the effects of globalization on the distributions of firm size … have lower values of Tobin's Q than small firms. Second, it explains the globalization-skewness puzzle documented in the … our model, globalization not only affects the distribution of observed productivities but also productivity at the firm …
Persistent link: https://www.econbiz.de/10012466343
Internationalized production, that is, production in a country controlled by firms based in another country, grew from about 4.5% of world output in 1970 to over 7% in 1995. The importance of internationalized output fell substantially in developing countries until around 1990 but has been been...
Persistent link: https://www.econbiz.de/10012472403
This paper provides direct empirical evidence on the relationship between technology and firms' global sourcing strategies. Using new data on U.S. firms' decisions to contract for manufacturing services from domestic or foreign suppliers, I show that a firm's adoption of communication technology...
Persistent link: https://www.econbiz.de/10012456129
We introduce a general quantifiable framework to study the location decisions of multinational firms. In the model, firms choose in which locations to pay the fixed costs of setting up production, taking into account potential complementarities among production locations. The firm's location...
Persistent link: https://www.econbiz.de/10014437008
Does the offshoring of production degrade or enhance the innovative capabilities of manufacturing firms? We contribute to this debate by exploiting a policy shock that differentially affected the ability of Taiwanese firms to offshore some products to China. We find causal evidence that...
Persistent link: https://www.econbiz.de/10012616565
A positive correlation between productivity and export market participation has been well documented in producer micro data. Recent empirical studies and theoretical analyses have emphasized that this may reflect the producer's other investment activities, particularly investments in R&D or new...
Persistent link: https://www.econbiz.de/10012463977
In this paper, we study the effects of FDI on domestic employment by examining the data of Taiwan's manufacturing … employment is a combination of substitution and output effects. For Taiwan, the net effect is positive in most cases but it …
Persistent link: https://www.econbiz.de/10012468538