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This paper investigates the effects of mergers on the product mix of multiproduct firms. Thus, we open the black box of post-merger efficiency improvements to reveal a new margin of adjustment along the product dimension. We analyze horizontal mergers in a theoretical model where oligopolistic...
Persistent link: https://www.econbiz.de/10014278534
We measure the "new" gains from trade reaped by Canada as a result of the Canada-US Free Trade Agreement (CUSFTA). We think of the "new" gains from trade of a country as all welfare effects pertaining to changes in the set of firms serving that country as emphasized in the so-called "new" trade...
Persistent link: https://www.econbiz.de/10011663205
In his seminal paper, starting from the premise that productivity is heterogeneous across firms, Melitz (2003) nicely … accounts for the stylized fact that the level of individual productivity is key in determining the capability of a firm to … depends on both productivity and net worth, and both are heterogeneous across firms. We show that firms with low productivity …
Persistent link: https://www.econbiz.de/10011739616
size and productivity) are relevant besides country level barriers on trade matter for participation in world trade. This …
Persistent link: https://www.econbiz.de/10011807638
In endeavouring to explain the empirical puzzle that the sunk costs of exporting are important, but that, at the same time, trade flows do not, on average, survive for very long, this paper explores the concepts of core and peripheral markets. First, it illustrates that if the importance of sunk...
Persistent link: https://www.econbiz.de/10013208628
products with intermediate productivity. Shocks to trade costs and technology affect the endogenous decision to export or … produce abroad at the product-level and, in turn, the relative productivity between parents and affiliates. …
Persistent link: https://www.econbiz.de/10012662696
-house production and seemingly also in total sale. Firms' services intensity may affect their productivity, and thereby competitiveness …
Persistent link: https://www.econbiz.de/10012654380
, guarantees do not generally impact jobs, value added or productivity. Third, guarantees affect firms heterogeneously. Exports …
Persistent link: https://www.econbiz.de/10012654440
What drives firms' geographic diversification in international markets? I build a model to show that if some export costs are sunk and shared between alike destinations, the decision of a firm to enter a market is a function of its experience in a similar one. Using a rich firm-level dataset for...
Persistent link: https://www.econbiz.de/10010325082
average productivity with only a muted effect on wages or margins. Owing to the exit of firms and the increase in productivity …
Persistent link: https://www.econbiz.de/10011430088