scholarly journals Product Mix and Firm Productivity Responses to Trade Competition

2020 ◽  
pp. 1-59
Author(s):  
Thierry Mayer ◽  
Marc J. Melitz ◽  
Gianmarco I.P. Ottaviano
Keyword(s):  
Theoretical Model ◽  
Firm Productivity ◽  
Product Mix ◽  
Export Markets ◽  
Demand Shocks ◽  
Price Elasticities ◽  
Trade Competition

We document how demand shocks in export markets lead French multi-product exporters to re-allocate the mix of products sold in those destinations. In response to positive demand shocks, French firms skew their export sales towards their bestperforming products. We develop a theoretical model of multi-product firms and derive the specific demand conditions (with endogenous price elasticities) needed to generate these product-mix reallocations. Under those demand conditions, the increased competition from demand shocks in export markets also induce productivity changes within the firm. We empirically test for this connection between demand shocks and the productivity of multi-product firms. We find that this connection is economically substantial.

scholarly journals Product Mix and Firm Productivity Responses to Trade Competition

2016 ◽  
Author(s):  
Thierry Mayer ◽  
Marc J. Melitz ◽  
Gianmarco I.P. Ottaviano
Keyword(s):  
Firm Productivity ◽  
Product Mix ◽  
Trade Competition

scholarly journals Product Mix and Firm Productivity Responses to Trade Competition

2016 ◽  
Author(s):  
Thierry Mayer ◽  
Marc Melitz ◽  
Gianmarco I.P. Ottaviano
Keyword(s):  
Firm Productivity ◽  
Product Mix ◽  
Trade Competition

scholarly journals Market Size, Competition, and the Product Mix of Exporters

2014 ◽  
Vol 104 (2) ◽  
pp. 495-536 ◽  
Author(s):  
Thierry Mayer ◽  
Marc J. Melitz ◽  
Gianmarco I. P. Ottaviano
Keyword(s):  
Theoretical Model ◽  
Export Market ◽  
Market Size ◽  
Firm Productivity ◽  
Competitive Effect ◽  
Product Mix ◽  
Product Range

We build a theoretical model of multi-product firms that highlights how competition across market destinations affects both a firm’s exported product range and product mix. We show how tougher competition in an export market induces a firm to skew its export sales toward its best performing products. We find very strong confirmation of this competitive effect for French exporters across export market destinations. Theoretically, this within-firm change in product mix driven by the trading environment has important repercussions on firm productivity. A calibrated fit to our theoretical model reveals that these productivity effects are potentially quite large. (JEL D21, D24, F13, F14, F41, L11)

scholarly journals MANAGERIAL FACTORS INFLUENCING PRODUCTIVITY OF APPAREL MANUFACTURING ENTERPRISES IN HOCHIMINH CITY

2009 ◽  
Vol 12 (1) ◽  
pp. 60-70
Author(s):  
Loan Thi Kim Tran ◽  
Hung Nguyen Bui
Keyword(s):  
Developing Countries ◽  
Theoretical Model ◽  
Quantitative Research ◽  
Empirical Studies ◽  
Labour Productivity ◽  
Developed Countries ◽  
Firm Productivity ◽  
Apparel Manufacturing ◽  
Factors Influencing ◽  
Main Determinants

Productivity is playing a significant role in economic development of a nation. In the context of global and regional competition, productivity is critically important to industries in general and to firms/enterprises in a paucity. Especially, to developing countries, labour productivity is one of the most crucial determinants. A number of existing literature have involved productivity and factors influencing productivity in different ways and perspectives. However, most past studies have examined productivity across developed countries which may have conditions differ significantly from those of developing countries such as Vietnam. Alternately, based on results/findings of the previous empirical studies, researchers have just proposed a portfolio of factors having an effect on firm productivity. Moreover, there is a lack of an appropriate theoretical model into and out of these works. Therefore, this paper aims to bridge the gap in existing knowledge. The work introduces three sections. The first involves reviewing related literature on research topic. Seeking published and un published information relating to productivity area helps author to put forward a model which dig for main determinants to exert an impact on firm productivity. The second demonstrates quantitative research about key factors governing productivity of textile and garment firms/enterprises in Ho Chi Minh City. The last proposes a need for further research to test the recommended theoretical model.

Productivity Losses and Firm Responses to Electricity Shortages: Evidence from Ghana

2019 ◽  
Author(s):  
Ama Baafra Abeberese ◽  
Charles Godfred Ackah ◽  
Patrick Opoku Asuming
Keyword(s):  
Developing Economies ◽  
Manufacturing Firms ◽  
Firm Productivity ◽  
Product Mix ◽  
Productivity Losses ◽  
The World ◽  
Common Strategy ◽  
Negative Impacts ◽  
The Impact ◽  
Firm Responses

Abstract One of the commonly cited obstacles to firms’ operations in developing economies is inadequate access to electricity. This paper explores the impact of electricity outages on firm productivity using arguably exogenous variation in outages, induced by an electricity rationing program, across small and medium-sized Ghanaian manufacturing firms. The results indicate that eliminating outages in this setting could lead to an increase in firm productivity. Further analyses of the strategies firms use to cope with outages show that changing the firm's product mix to favor less electricity-intensive products mitigates the negative impacts of outages on productivity. However, using a generator, a common strategy in many parts of the world, is unable to insulate firms from the negative impacts of outages on productivity.

scholarly journals Competing With the Dragon: Employment Effects of Chinese Trade Competition in 17 Sectors Across 18 OECD Countries

2017 ◽  
Vol 7 (2) ◽  
pp. 215-232 ◽  
Author(s):  
Stefan Thewissen ◽  
Olaf van Vliet
Keyword(s):  
Time Series Data ◽  
Series Data ◽  
Skilled Workers ◽  
Export Markets ◽  
Skill Levels ◽  
Employment Effects ◽  
Industrialized Democracies ◽  
Chinese Trade ◽  
Pooled Time Series ◽  
Trade Competition

China’s rapid rise on the global economic stage has substantial and unequal employment effects in advanced industrialized democracies given China’s large volume of low-wage labor. Thus far, these effects have not been analyzed in the comparative political economy literature. Building on pooled time-series data, we analyze the effects of Chinese trade competition across 17 sectors in 18 countries. We devote attention to a new channel, increased competition from China in foreign export markets. Our empirical findings reveal overall employment declines in sectors more exposed to Chinese imports. Furthermore, our results suggest that employment effects are not equally shared across skill levels, as the share of hours worked worsens for low-skilled workers.

Venting Out: Exports during a Domestic Slump

2021 ◽  
Vol 111 (11) ◽  
pp. 3611-3662
Author(s):  
Miguel Almunia ◽  
Pol Antràs ◽  
David Lopez-Rodriguez ◽  
Eduardo Morales
Keyword(s):  
Negative Impact ◽  
Firm Level ◽  
Export Markets ◽  
Demand Shocks ◽  
The Great Recession ◽  
Marginal Costs ◽  
Heterogeneous Firm ◽  
Heterogeneous Firm Model ◽  
Using Data ◽  
Firm Model

We study the relationship between domestic-demand shocks and exports using data for Spanish manufacturing firms in 2002–2013. Exploiting plausibly exogenous geographical variation caused by the Great Recession, we find that firms whose domestic sales declined by more experienced a larger increase in export flows, controlling for firms’ supply determinants. This result illustrates the capacity of export markets to counteract the negative impact of local demand shocks. By structurally estimating a heterogeneous-firm model of exporting with nonconstant marginal costs of production, we conclude that these firm-level responses accounted for half of the spectacular increase in Spanish goods exports over the period 2009–2013. (JEL D22, E32, F14, L60)

scholarly journals Market Exposure and Endogenous Firm Volatility over the Business Cycle

2016 ◽  
Vol 8 (1) ◽  
pp. 148-198 ◽  
Author(s):  
Ryan A. Decker ◽  
Pablo N. D'Erasmo ◽  
Hernan Moscoso Boedo
Keyword(s):  
Theoretical Model ◽  
Business Cycle ◽  
Total Factor Productivity ◽  
Factor Productivity ◽  
Firm Level ◽  
Productivity Shocks ◽  
Demand Shocks ◽  
The Business Cycle ◽  
Total Factor Productivity Shocks

We propose a theory of endogenous firm-level risk over the business cycle based on endogenous market exposure. Firms that reach a larger number of markets diversify market-specific demand shocks at a cost. The model is driven only by total factor productivity shocks and captures the observed countercyclity of firm-level risk. Using a panel of US firms we show that, consistent with our theoretical model, measures of market reach are procyclical, and the counter-cyclicality of firm-level risk is driven by those firms that adjust their market exposure, which are larger than those that do not. (JEL D21, D22, E23, E32, L25)

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