We present a novel argument demonstrating that when trade is characterized by uncertainty the comparative advantages doctrine is misleading and a positive level of diversification is growth enhancing. Applying a result developed in the mathematical biological literature, we show that, in...

I document that (i) there is great heterogeneity in the physical weight of traded goods even within narrowly-defined product categories; (ii) heavier goods are more costly to produce; (iii) heavier goods exhibit a systematically higher product appeal or quality; (iv) heavier goods are more costly...

We document a strong decline in corporate-diversification activity since the late 1970's, and we develop a dynamic model that explains this pattern, both qualitatively and quantitatively. The key feature of the model is that synergies endogenously decline with technological specialization,...

We investigate the role of industry specialization in horizontal cross-border mergers and acquisitions. We find that acquirers from more specialized industries in a country are more likely to buy foreign targets in countries that are less specialized in these same industries. The role of...

We investigate the role of industry specialization in horizontal cross-border mergers and acquisitions. We find that acquirers from more specialized industries in a country are more likely to buy foreign targets in countries that are less specialized in these same industries. The role of...

Capital structure puzzle - how capital structure of a firm is determined, is one of the most hotly contested issues in corporate finance. Many studies have been carried out recently in Indian context too to study this issue - across various industries: Madan (2007) hotel industry, Narayan,...

This paper investigates the impact of global value chain participation on productivity, using data on trade in value added from the World Input-Output Database. The results based on a panel estimation covering 13 sectors in 40 countries over 15 years suggest that participation in global value...