This file is part of IDEAS , which uses RePEc data
[ Papers |
Articles |
Software |
Books |
Chapters |
Authors |
Institutions |
JEL Classification |
NEP reports |
Search |
New papers by email |
Author registration |
Rankings |
Volunteers |
FAQ |
Blog |
Help! ]
Multi-Product Firms and Trade Liberalization Author info | Abstract | Publisher info | Download info | Related research | Statistics Andrew B. Bernard
Stephen Redding
Peter K. Schott
Additional information is available for the following
registered author(s):
This paper develops a general equilibrium model of multi-product firms and analyzes their behavior during tradeliberalization. Firm productivity in a given product is modeled as a combination of firm-level "ability" and firmproduct-level "expertise", both of which are stochastic and unknown prior to the firm's payment of a sunk costof entry. Higher firm-level ability raises a firm's productivity across all products, which induces a positivecorrelation between a firm's intensive (output per product) and extensive (number of products) margins. Tradeliberalization fosters productivity growth within and across firms and in aggregate by inducing firms to shedmarginally productive products and forcing the lowest-productivity firms to exit. Though exporters produce asmaller range of products after liberalization, they increase the share of products sold abroad as well as exportsper product. All of these adjustments are shown to be relatively more pronounced in countries' comparativeadvantage industries.
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page . Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number
dp0769.
Download reference. The following formats are available: HTML
(with abstract ),
plain text
(with abstract ),
BibTeX ,
RIS (EndNote, RefMan, ProCite),
ReDIF
Length:
Date of creation: Dec 2006Date of revision:
Handle: RePEc:cep:cepdps:dp0769Contact details of provider: Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP
For technical questions regarding this item, or to correct its listing, contact: ().
Keywords: heterogeneous firms ; endogenous product scope ; love of variety ; core competency ; Other versions of this item:
Find related papers by JEL classification: F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
This paper has been announced in the following NEP Reports :
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Bernard, Andrew & Redding, Stephen J & Schott, Peter, 2006.
"Multi-Product Firms and Product Switching ,"
CEPR Discussion Papers
5708, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted)
Other versions:
Andrew B. Bernard & Stephen Redding & Peter K. Schott, 2006.
"Multi-Product Firms and Product Switching ,"
CEP Discussion Papers
dp0736, Centre for Economic Performance, LSE.
[Downloadable!] Andrew B. Bernard & Stephen J. Redding & Peter K. Schott, 2006.
"Multi-Product Firms and Product Switching ,"
NBER Working Papers
12293, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Andrew Bernard & Stephen Redding & Peter Schott, 2008.
"Multi-Product Firms and Product Switching ,"
Working Papers
08-24, Center for Economic Studies, U.S. Census Bureau.
[Downloadable!] Dunne, Timothy & Roberts, Mark J & Samuelson, Larry, 1989.
"The Growth and Failure of U.S. Manufacturing Plants ,"
The Quarterly Journal of Economics ,
MIT Press, vol. 104(4), pages 671-98, November.
[Downloadable!] (restricted)
Other versions: Aghion, Philippe & Tirole, Jean, 1997.
"Formal and Real Authority in Organizations ,"
Journal of Political Economy ,
University of Chicago Press, vol. 105(1), pages 1-29, February.
Other versions:
Aghion, Philippe & Tirole, Jean, 1994.
"Formal and Real Authority in Organizations ,"
IDEI Working Papers
37, Institut d'Économie Industrielle (IDEI), Toulouse.
Philippe Aghion & Jean Tirole, 1994.
"Formal and Real Authority in Organizations ,"
Working papers
95-8, Massachusetts Institute of Technology (MIT), Department of Economics.
Philippe Aghion & Jean Tirole, 1994.
"Normal and Real Authority in Organizations ,"
Working papers
94-13, Massachusetts Institute of Technology (MIT), Department of Economics.
Baumol, William J, 1977.
"On the Proper Cost Tests for Natural Monopoly in a Multiproduct Industry ,"
American Economic Review ,
American Economic Association, vol. 67(5), pages 809-22, December.
[Downloadable!] (restricted)
James E. Anderson & Eric van Wincoop, 2004.
"Trade Costs ,"
NBER Working Papers
10480, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions: Andrew B. Bernard & J. Bradford Jensen & Peter K. Schott, 2005.
"Importers, Exporters, and Multinationals: A Portrait of Firms in the U.S. that Trade Goods ,"
NBER Working Papers
11404, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions:
J. Bradford Jensen & Andrew Bernard & Peter Schott, 2005.
"Importers, Exporters, and Multinationals: A Portrait of Firms in the U.S. that Trade Goods ,"
Working Papers
05-20, Center for Economic Studies, U.S. Census Bureau.
[Downloadable!] Andrew B. Bernard & J. Bradford Jensen & Peter K. Schott, 2005.
"Importers, Exporters, and Multinationals: A Portrait of Firms in the U.S. that Trade Goods ,"
Peterson Institute Working Paper Series
WP05-10, Peterson Institute for International Economics.
[Downloadable!] Tor Jakob Klette & Samuel Kortum, 2004.
"Innovating Firms and Aggregate Innovation ,"
Journal of Political Economy ,
University of Chicago Press, vol. 112(5), pages 986-1018, October.
Other versions:
Klette, Tor Jakob & Kortum, Samuel S, 2002.
"Innovating Firms and Aggregate Innovation ,"
CEPR Discussion Papers
3248, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Tor Jakob Klette & Samuel Kortum, 2002.
"Innovating Firms and Aggregate Innovation ,"
NBER Working Papers
8819, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Klette, Tor Jakob & Kortum, Samuel, 2002.
"Innovating Firms and Aggregate Innovation ,"
Memorandum
02/2002, Oslo University, Department of Economics.
[Downloadable!] Jakob Klette & Samuel Kortum, 2002.
"Innovating firms and aggregate innovation ,"
Staff Report
300, Federal Reserve Bank of Minneapolis.
[Downloadable!] Bernard, Andrew B. & Jensen, J. Bradford & Schott, Peter K., 2006.
"Trade costs, firms and productivity ,"
Journal of Monetary Economics ,
Elsevier, vol. 53(5), pages 917-937, July.
[Downloadable!] (restricted)
Bernard, Andrew B. & Bradford Jensen, J., 1999.
"Exceptional exporter performance: cause, effect, or both? ,"
Journal of International Economics ,
Elsevier, vol. 47(1), pages 1-25, February.
[Downloadable!] (restricted)
Other versions:
Andrew B. Bernard & J. Bradford Jensen, 1997.
"Exceptional Exporter Performance: Cause, Effect, or Both? ,"
NBER Working Papers
6272, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Bernard, A., 1997.
"Exceptional Exporter Performance: Cause, Effect, or Both? ,"
Working papers
97-21, Massachusetts Institute of Technology (MIT), Department of Economics.
John Haltiwanger & C J Krizan & Lucia Foster, 1998.
"Aggregate Productivity Growth: Lessons From Microeconomic Evidence ,"
Working Papers
98-12, Center for Economic Studies, U.S. Census Bureau.
[Downloadable!]
Other versions: Volker Nocke & Stephen Yeaple, 2006.
"Globalization and Endogenous Firm Scope ,"
NBER Working Papers
12322, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions: Andrew B. Bernard & Jonathan Eaton & J. Bradford Jensen & Samuel Kortum, 2003.
"Plants and Productivity in International Trade ,"
American Economic Review ,
American Economic Association, vol. 93(4), pages 1268-1290, September.
[Downloadable!]
Other versions:
Andrew B Bernard & Jonathan Eaton & J. Bradford Jensen & Samuel Kortum, 2000.
"Plants and productivity in international trade ,"
Working Papers
00-08, Center for Economic Studies, U.S. Census Bureau.
[Downloadable!] Andrew B. Bernard & Jonathan Eaton & J. Bradford Jenson & Samuel Kortum, 2000.
"Plants and Productivity in International Trade ,"
NBER Working Papers
7688, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Andrew B. Bernard & Jonathan Eaton & J. Bradford Jensen & Samuel Kortum, 2000.
"Plants and Productivity in International Trade ,"
Boston University - Institute for Economic Development
105, Boston University, Institute for Economic Development.
[Downloadable!] Andrew B. Bernard & Jonathan Eaton & J. Bradford Jensen & Samuel Kortum, 2000.
"Plants and Productivity in International Trade ,"
Trade Working Papers
161, East Asian Bureau of Economic Research.
[Downloadable!] Eaton, B Curtis & Schmitt, Nicolas, 1994.
"Flexible Manufacturing and Market Structure ,"
American Economic Review ,
American Economic Association, vol. 84(4), pages 875-88, September.
[Downloadable!] (restricted)
Other versions: Roberts, Mark J & Tybout, James R, 1997.
"The Decision to Export in Colombia: An Empirical Model of Entry with Sunk Costs ,"
American Economic Review ,
American Economic Association, vol. 87(4), pages 545-64, September.
[Downloadable!] (restricted)
Bailey, Elizabeth E & Friedlaender, Ann F, 1982.
"Market Structure and Multiproduct Industries ,"
Journal of Economic Literature ,
American Economic Association, vol. 20(3), pages 1024-48, September.
[Downloadable!] (restricted)
Eric J. Bartelsman & Mark Doms, 2000.
"Understanding Productivity: Lessons from Longitudinal Microdata ,"
Journal of Economic Literature ,
American Economic Association, vol. 38(3), pages 569-594, September.
[Downloadable!] (restricted)
Other versions: Andrew B. Bernard & Stephen J. Redding & Peter K. Schott, 2007.
"Comparative Advantage and Heterogeneous Firms ,"
Review of Economic Studies ,
Blackwell Publishing, vol. 74(1), pages 31-66, 01.
[Downloadable!] (restricted)
Other versions:
Andrew Bernard & Stephen Redding & Peter Schott, 2004.
"Comparative advantage and heterogeneous firms ,"
IFS Working Papers
W04/24, Institute for Fiscal Studies.
[Downloadable!] Andrew B. Bernard & Stephen Redding & Peter K. Schott, 2004.
"Comparative Advantage and Heterogeneous Firms ,"
CEP Discussion Papers
dp0643, Centre for Economic Performance, LSE.
[Downloadable!] Andrew B. Bernard & Stephen Redding & Peter K. Schott, 2004.
"Comparative Advantage and Heterogeneous Firms ,"
NBER Working Papers
10668, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Bernard, Andrew & Redding, Stephen J & Schott, Peter, 2004.
"Comparative Advantage and Heterogenous Firms ,"
CEPR Discussion Papers
4622, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Panzar, John C & Willig, Robert D, 1977.
"Economies of Scale in Multi-Output Production ,"
The Quarterly Journal of Economics ,
MIT Press, vol. 91(3), pages 481-93, August.
[Downloadable!] (restricted)
Brander, James A & Eaton, Jonathan, 1984.
"Product Line Rivalry ,"
American Economic Review ,
American Economic Association, vol. 74(3), pages 323-34, June.
[Downloadable!] (restricted)
Other versions: Carsten Eckel & J Peter Neary, 2006.
"Multi-Product Firms and Flexible Manufacturing in the Global Economy ,"
Working Papers
200608, School Of Economics, University College Dublin.
[Downloadable!]
Other versions: Francis Kramarz & Jonathan Eaton & Samuel Kortum, 2005.
"An Anatomy of International Trade: Evidence from French Firms ,"
2005 Meeting Papers
197, Society for Economic Dynamics.
Other versions:
Jonathan Eaton & Samuel Kortum & Francis Kramarz, 2008.
"An Anatomy of International Trade: Evidence from French Firms ,"
NBER Working Papers
14610, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Eaton, Jonathan & Kortum, Samuel S & Kramarz, Francis, 2009.
"An Anatomy of International Trade: Evidence from French Firms ,"
CEPR Discussion Papers
7111, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Jonathan Eaton & Samuel Kortum, 2004.
"An Anatomy of International Trade: Evidence from French Firms ,"
2004 Meeting Papers
802, Society for Economic Dynamics.
[Downloadable!] Milgrom, Paul & Roberts, John, 1990.
"The Economics of Modern Manufacturing: Technology, Strategy, and Organization ,"
American Economic Review ,
American Economic Association, vol. 80(3), pages 511-28, June.
[Downloadable!] (restricted)
Choi, E Kwan & Harrigan, James, 2004.
"Handbook of International Trade ,"
Staff General Research Papers
11375, Iowa State University, Department of Economics.
Ericson, Richard & Pakes, Ariel, 1995.
"Markov-Perfect Industry Dynamics: A Framework for Empirical Work ,"
Review of Economic Studies ,
Blackwell Publishing, vol. 62(1), pages 53-82, January.
[Downloadable!] (restricted)
Daniel Trefler, 2004.
"The Long and Short of the Canada-U. S. Free Trade Agreement ,"
American Economic Review ,
American Economic Association, vol. 94(4), pages 870-895, September.
[Downloadable!]
Other versions: Jovanovic, Boyan, 1982.
"Selection and the Evolution of Industry ,"
Econometrica ,
Econometric Society, vol. 50(3), pages 649-70, May.
[Downloadable!] (restricted)
Baldwin, Richard E. & Ottaviano, Gianmarco I. P., 2001.
"Multiproduct multinationals and reciprocal FDI dumping ,"
Journal of International Economics ,
Elsevier, vol. 54(2), pages 429-448, August.
[Downloadable!] (restricted)
Other versions: John Sutton, 1997.
"Gibrat's Legacy ,"
Journal of Economic Literature ,
American Economic Association, vol. 35(1), pages 40-59, March.
[Downloadable!] (restricted)
Sofronis Clerides & Saul Lach & James Tybout, 1996.
"Is "Learning-by-Exporting" Important? Micro-Dynamic Evidence from Colombia, Mexico and Morocco ,"
NBER Working Papers
5715, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions:
Sofronis Clerides & Saul Lach & James Tybout, 1996.
"Is "learning-by-exporting" important? Micro-dynamic evidence from Colombia, Mexico and Morocco ,"
Finance and Economics Discussion Series
96-30, Board of Governors of the Federal Reserve System (U.S.).
[Downloadable!] Sofronis K. Clerides & Saul Lach & James R. Tybout, 1998.
"Is Learning By Exporting Important? Micro-Dynamic Evidence From Colombia, Mexico, And Morocco ,"
The Quarterly Journal of Economics ,
MIT Press, vol. 113(3), pages 903-947, August.
[Downloadable!] (restricted) Marc J. Melitz, 2003.
"The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity ,"
Econometrica ,
Econometric Society, vol. 71(6), pages 1695-1725, November.
[Downloadable!] (restricted)
Other versions: Esteban Rossi-Hansberg & Mark L. J. Wright, 2006.
"Establishment size dynamics in the aggregate economy ,"
Staff Report
382, Federal Reserve Bank of Minneapolis.
[Downloadable!]
Other versions: Ron S Jarmin & Javier Miranda, 2002.
"The Longitudinal Business Database ,"
Working Papers
02-17, Center for Economic Studies, U.S. Census Bureau.
[Downloadable!]
Tybout, James R. & Westbrook, M. Daniel, 1995.
"Trade liberalization and the dimensions of efficiency change in Mexican manufacturing industries ,"
Journal of International Economics ,
Elsevier, vol. 39(1-2), pages 53-78, August.
[Downloadable!] (restricted)
Pavcnik, Nina, 2002.
"Trade Liberalization, Exit, and Productivity Improvement: Evidence from Chilean Plants ,"
Review of Economic Studies ,
Blackwell Publishing, vol. 69(1), pages 245-76, January.
Other versions: Baldwin, John R. & Gu, Wulong, 2006.
"The Impact of Trade on Plant Scale, Production-Run Length and Diversification ,"
Economic Analysis (EA) Research Paper Series
2006038e, Statistics Canada, Analytical Studies Branch.
[Downloadable!]
repec:rus:hseeco:122439 is not listed on IDEAS
Hopenhayn, Hugo A, 1992.
"Entry, Exit, and Firm Dynamics in Long Run Equilibrium ,"
Econometrica ,
Econometric Society, vol. 60(5), pages 1127-50, September.
[Downloadable!] (restricted)
Andrew B. Bernard & J. Bradford Jensen, 2004.
"Why Some Firms Export ,"
The Review of Economics and Statistics ,
MIT Press, vol. 86(2), pages 561-569, 04.
[Downloadable!] (restricted)
Other versions:
Full
references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.) This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page .
Access and
download statistics Did you know? IDEAS was sponsored from 1997 to 2002 by the Université du Québec à Montréal .
This page was last updated on 2009-11-18.
This information is provided to you by IDEAS at the Department of Economics , College of Liberal Arts and Sciences , University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics .