• Media type: E-Book
  • Title: Globalization and Multiproduct Firms
  • Contributor: Nocke, Volker [Author]; Yeaple, Stephen [Other]
  • Corporation: National Bureau of Economic Research
  • Published: Cambridge, Mass: National Bureau of Economic Research, September 2013
  • Published in: NBER working paper series ; no. w19409
  • Extent: 1 Online-Ressource
  • Language: English
  • DOI: 10.3386/w19409
  • Identifier:
  • Reproduction note: Hardcopy version available to institutional subscribers
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  • Description: We present an international trade model with multiproduct firms. Firms are heterogeneously endowed with two types of capabilities that jointly determine the trade-off within firms between managing a large portfolio of products and producing at low marginal cost. The model can explain many of the documented cross-sectional correlations in firm performance measures, including why larger firms are more productive and more diversified, and yet more diversified firms trade at a discount. Globalization is shown to induce heterogeneous responses across firms in terms of scope and productivity, some of which are consistent with existing empirical work, while others are potentially testable
  • Access State: Open Access