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The Impact of Large Firms in Promoting Economic Growth, Exports and Regional Integration: A Chandlerian Perspective with Emphasis on East Asia

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    Abstract

    Chandler’s work is well known. He has amply demonstrated that large firms played a huge role in the economic take-off and development of countries such as Germany and especially the USA. In this paper his thesis is extended to the whole world, by considering various countries, economically integrated regions, their exports and economic achievement. The largest firms in the world are examined in this context. Chandler’s thesis is thus confirmed with this analysis and some quantitative evidence is provided in that respect. In particular, Korea’s position is quite strong in the region of East Asia following Japan’s leadership. This paper also demonstrates that SMEs role in economic development without the presence of large firms would be rather limited. Last but not least, integration seems to take place even without the existence of formal agreements due to the presence of large firms.

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    File URL: http://www.uow.edu.au/content/groups/public/@web/@commerce/@econ/documents/doc/uow012236.pdf
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    Bibliographic Info

    Paper provided by School of Economics, University of Wollongong, NSW, Australia in its series Economics Working Papers with number wp06-23.

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    Length: 18 pages
    Date of creation: 2006
    Date of revision:
    Handle: RePEc:uow:depec1:wp06-23

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    Postal: School of Economics, University of Wollongong, Northfields Avenue, Wollongong NSW 2522 Australia
    Phone: +612 4221-3659
    Fax: +612 4221-3725
    Web page: http://business.uow.edu.au/econ/index.html
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    Keywords: Largest 2000 firms; national exports; Chandler; regression;

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    1. Richard N. Langlois, 2003. "Chandler in a Larger Frame: Markets, Transaction Costs, and Organizational Form in History," Working papers 2003-16R, University of Connecticut, Department of Economics, revised Jan 2004.
    2. Roberto Basile & Anna Giunta & Jeffrey Nugent, 2003. "Foreign Expansion by Italian Manufacturing Firms in the Nineties: an Ordered Probit Analysis," Review of Industrial Organization, Springer, vol. 23(1), pages 1-24, August.
    3. Andrea Bonaccorsi, 1992. "On the Relationship Between Firm Size and Export Intensity," Journal of International Business Studies, Palgrave Macmillan, vol. 23(4), pages 605-635, December.
    4. Xiaohui Liu & Chang Shu, 2003. "Determinants of Export Performance: Evidence from Chinese Industries," Economic Change and Restructuring, Springer, vol. 36(1), pages 45-67, March.
    5. Ernst Verwaal & Bas Donkers, 2002. "Firm Size and Export Intensity: Solving an Empirical Puzzle," Journal of International Business Studies, Palgrave Macmillan, vol. 33(3), pages 603-613, September.
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    Cited by:
    1. Sanidas, Elias, 2006. "The Huddle/Tangle Hypothesis of Regional Integration: The Case of the European Union and Its Enlargement," Economics Working Papers wp06-29, School of Economics, University of Wollongong, NSW, Australia.

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