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Growth of the firm and foreign trade

Author

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  • Fabricio Catermol

Abstract

This paper analyzes the growth of the firm by foreign trade. The theory of Adrian Wood is revisited for the analysis of growth and profit trade-off and improved to cope with growth by exports. The main outcome of this paper is that low domestic demand can be a very important factor to firm choices growth by foreign market. However, the growth of domestic demand does not necessarily reduce exports. JEL Classification: D21; L11; F12.

Suggested Citation

  • Fabricio Catermol, 2006. "Growth of the firm and foreign trade," Brazilian Journal of Political Economy, Center of Political Economy, vol. 26(2), pages 239-257.
    • Handle: RePEc:ekm:repojs:v:26:y:2006:i:2:p:239-257:id:599
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    File URL: https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/599/597
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    More about this item

    Keywords

    foreign trade; firm strategy; barriers to exit; Adrian Wood;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation

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