This paper investigates the effects of international trade on firms' strategies for industry exit, either via closedown, switching industry or being acquired. We use a rich dataset of Swedish firms that extends over two decades to track firm choices between alternative strategies. We find that higher levels of international competition increase the probability of exit by merger and closedown. If trade is more intra-industry in character, the effect of import penetration on the probability of exit is less. The probability of exit by switching industry is higher in revealed comparative disadvantage industries. Finally, we find that the geographical source of international competition is important, the effects of trade on exit being strongest when trading partners are other OECD countries.
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Volume (Year): 74 (2008) Issue (Month): 2 (March) Pages: 264-277 Download reference. The following formats are available: HTML
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Holger Görg & Richard Kneller & Balázs Muraközy, 2008.
"What Makes a Successful Export?,"
CeFiG Working Papers
2, Center for Firms in the Global Economy, revised 01 Feb 2008.
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