scholarly journals Local product space and firm-level churning in exported products

2019 ◽  
Vol 28 (6) ◽  
pp. 1473-1496
Author(s):  
Cilem Selin Hazir ◽  
Flora Bellone ◽  
Cyrielle Gaglio
Keyword(s):  
Product Space ◽  
Local Environment ◽  
Product Market ◽  
Manufacturing Firms ◽  
Entry And Exit ◽  
Micro Data ◽  
Firm Level ◽  
The Core ◽  
Local Product ◽  
Core Capabilities

Abstract This article explores the determinants of changes to the range of exports at the firm level with a focus on the role played by the firm’s local environment. It extends the model developed by Bernard et al. (2010) to a multiregional setting to account for localized externalities. The model is tested using French micro-data on monoregional manufacturing firms covering the period 2002–2007. Our main finding is that the local product space has an impact on exporters’ product-market entry and exit decisions. Firms tend to modify their exported product mix to achieve congruence with the core products of the locality. Also, firms receive higher revenue from the export of products that are more related to the core capabilities of the locality.

Size-Competition-Productivity Nexus: Evidence from Indian Manufacturing Firms

2019 ◽  
Vol 20 (2) ◽  
pp. 303-321
Author(s):  
Lopamudra D. Satpathy ◽  
Bikash Ranjan Mishra
Keyword(s):  
Firm Size ◽  
Market Competition ◽  
Value Added ◽  
Product Market ◽  
Manufacturing Firms ◽  
Product Market Competition ◽  
Causality Test ◽  
Firm Level ◽  
Panel Ardl ◽  
Long Run

Over the years, researches have witnessed incongruence nature and direction of relationship among product market competition and firm size with the growth of firms’ productivity across the globe. Considering these gaps, this study aims to establish both short- and long-run relationships among these three characteristics of Indian manufacturing firms and intends to find their directions of causalities. This study uses firm-level data over a period of 1998–1999 to 2012–2013. Using Panel ARDL-PMG method, the results reveal the existence of a long-run association among product market competition, firm size and productivity growth for the full sample and for subsamples, categorizing relatively efficient and inefficient firms, and innovative and non-innovative firms. From the panel VECM Granger causality test, it has been observed that there is the long-run feedback relationship among these three variables. The empirical evidence suggests that as the intensity of competition becomes stronger and the firm-specific capabilities expand, they impart improved productivity via within and between firm effects. This draws some major implications for policymakers to embrace more competitive prone policies along with encouragement to firm specificities to realise value-added productivity. JEL: C33, D24, L11, L60

Do product market reforms raise innovation? Evidence from Micro-data across 12 countries

2021 ◽  
Vol 169 ◽  
pp. 120841
Author(s):  
Anastasia Litina ◽  
Christos Makridis ◽  
Georgios Tsiachtsiras
Keyword(s):  
Product Market ◽  
Market Reforms ◽  
Micro Data

scholarly journals Firm Level Strategy, Organization Culture and Performance of Food and Beverage Manufacturing Firms in Kenya

2018 ◽  
Vol 13 (8) ◽  
pp. 224 ◽  
Author(s):  
Zachary B. Awino ◽  
Dominic C. Muteshi ◽  
Reginah K. Kitiabi ◽  
Ganesh P. Pokhariyal
Keyword(s):  
Policy Formulation ◽  
Manufacturing Firms ◽  
Organization Culture ◽  
Hierarchical Regression ◽  
Firm Level ◽  
Food And Beverage ◽  
Improved Performance ◽  
And Performance ◽  
The Impact ◽  
The Relationship

The study tested the impact of organization culture on the on the relationship between firm-level strategy and performance of food and beverage manufacturing firms in Kenya. The opinion of the CEO/MDs from 125 firms in this sector was sought by application of a structured questionnaire; the collected data was analysed using hierarchical regression analysis. The paper stated hypothesis that organizational culture has a significant effect on the relationship between firm-level strategy and performance. The results supported the hypothesis. Therefore, firm development of strong organization culture to support firm-level strategy for higher performance is paramount. These findings will contribute to government policy formulation for sector’s expansion and competitiveness and management drives in building a positive organization culture to support firm-level strategy for improved performance.

Servitization of Industry: New Evidence

2021 ◽  
Vol 65 (8) ◽  
pp. 22-30
Author(s):  
V. Kondrat’ev ◽  
G. Kedrova ◽  
V. Popov
Keyword(s):  
Economic Policy ◽  
Business Models ◽  
Manufacturing Firms ◽  
Policy Implications ◽  
New Economic Policy ◽  
Firm Level ◽  
Policy Regime ◽  
Goods And Services ◽  
New Business ◽  
Use Of Services

A significant increase in the use of services is observed for some industries in GVCs (Global Value Chains). The paper has shed light on important dimension of the servitization which is the sale and export of services by manufacturing firms, often bundled together with goods. Firm-level data confirm that many firms are involved both in the production of goods and services and that there are complementarities between these activities. Not only manufacturing firms are involved in the distribution, transport and logistics services needed for their international operations in GVCs but also, they provide installation, maintenance, repair services as well as a variety of other business support and complementary services that increase value for their customers. The servitization has important policy implications, particularly when taking into account the fact that trade in services is generally more restricted than trade in goods. As the lines between goods and services are blurred, economic policy today might be more challenging than in the past, particularly for companies moving to new business models that imply more interactions with customers and a more intensive use of digital technologies. Services themselves are split into different modes of supply for which there are different levels of economic policy. A closer look at the mechanisms of value creation in the case of services suggests that there are still the needs of new economic policy addressed at business models described as value networks or value shops. As technologies become more disruptive and more companies move to ‘servicified’ GVCs, the need for a more consistent international economic policy regime, particularly at the multilateral level, will become more urgent.

AGGREGATE MARKUP DYNAMICS: EVIDENCE FROM CHINA

2021 ◽  
pp. 1-21
Author(s):  
YUE WEN
Keyword(s):  
Trade Liberalization ◽  
Decomposition Method ◽  
Dynamic Change ◽  
Manufacturing Firms ◽  
Sample Period ◽  
Upward Trend ◽  
Firm Level ◽  
Industry Level ◽  
New Perspective

Unlike previous studies that focus on the change of firm-level markup, this study focuses on the change of industry-level aggregate markup. From the data of China’s manufacturing firms in 1999–2007, this study exploits the dynamic change of aggregate markup by using the decomposition method which is proposed by Melitz and Polanec (2015). The result shows that China’s manufacturing aggregate markup has an upward trend during the sample period, which mainly comes from the contribution of surviving firms. On the contrary, the contribution of entering and exiting firms to the aggregate markup is negative. Further analysis shows that trade liberalization is one of the reasons to promote the increase of China’s manufacturing aggregate markup. This study provides a new perspective for understanding the dynamic change of the aggregate markup.

scholarly journals Innovation, Reallocation, and Growth

2018 ◽  
Vol 108 (11) ◽  
pp. 3450-3491 ◽  
Author(s):  
Daron Acemoglu ◽  
Ufuk Akcigit ◽  
Harun Alp ◽  
Nicholas Bloom ◽  
William Kerr
Keyword(s):  
Productivity Growth ◽  
Endogenous Entry ◽  
Entry And Exit ◽  
Firm Level ◽  
High Type ◽  
Percent Improvement ◽  
Us Census ◽  
Innovative Capacity ◽  
Firm Entry And Exit ◽  
Central Economic

We build a model of firm-level innovation, productivity growth, and reallocation featuring endogenous entry and exit. A new and central economic force is the selection between high- and low-type firms, which differ in terms of their innovative capacity. We estimate the parameters of the model using US Census microdata on firm-level output, R&D, and patenting. The model provides a good fit to the dynamics of firm entry and exit, output, and R&D. Taxing the continued operation of incumbents can lead to sizable gains (of the order of 1.4 percent improvement in welfare) by encouraging exit of less productive firms and freeing up skilled labor to be used for R&D by high-type incumbents. Subsidies to the R&D of incumbents do not achieve this objective because they encourage the survival and expansion of low-type firms. (JEL D21, D24, H25, L52, O31, O34)

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