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Factoryless Goods Producing Firms

Author

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  • Andrew B. Bernard
  • Teresa C. Fort

Abstract

This paper documents the existence and characteristics of US firms that do not manufacture themselves, but nonetheless are heavily involved in the production of goods. These factoryless goods producing firms (FGPFs) are formally in the wholesale sector but, unlike traditional wholesale firms, FGPFs design the goods they sell and coordinate production activities. FGPFs in the wholesale sector are larger and younger, pay higher wages, span more sectors and had more manufacturing employment in previous years compared to traditional wholesalers. FGPFs are more likely to import than typical wholesalers, though their imports constitute a smaller share of their total domestic activity.

Suggested Citation

  • Andrew B. Bernard & Teresa C. Fort, 2015. "Factoryless Goods Producing Firms," American Economic Review, American Economic Association, vol. 105(5), pages 518-523, May.
  • Handle: RePEc:aea:aecrev:v:105:y:2015:i:5:p:518-23
    Note: DOI: 10.1257/aer.p20151044
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    References listed on IDEAS

    as
    1. Andrew B. Bernard & Teresa C. Fort, 2013. "Factoryless Goods Producers in the US," Working Papers 13-46, Center for Economic Studies, U.S. Census Bureau.
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    Citations

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    Cited by:

    1. Andrea Ariu & Florian Mayneris & Mathieu Parenti, 2018. "One way to the top : How services boost the demand for goods," Working Paper Research 340, National Bank of Belgium.
    2. repec:rnp:ecopol:ep1763 is not listed on IDEAS
    3. Morikawa, Masayuki, 2016. "Factoryless goods producers in Japan," Japan and the World Economy, Elsevier, vol. 40(C), pages 9-15.
    4. Sophie Piton, 2018. "Do Unit Labor Costs Matter? A Decomposition Exercise on European Data," PSE Working Papers halshs-01785345, HAL.
    5. Sophie Piton, 2017. "Economic Integration and the Non-tradable Sector: The European Experience," 2017 Papers ppi361, Job Market Papers.
    6. Olney , William W. & Pozzoli , Dario, 2018. "The Impact of Immigration on Firm Level Offshoring," Working Papers 3-2018, Copenhagen Business School, Department of Economics.
    7. Lindsay Oldenski, 2015. "Reshoring by US Firms: What Do the Data Say?," Policy Briefs PB15-14, Peterson Institute for International Economics.
    8. Andrea Ariu & Florian Mayneris & Mathieu Parenti, 2016. "Providing Services to Boost Goods Exports: Theory and Evidence," Working Papers ECARES ECARES 2016-43, ULB -- Universite Libre de Bruxelles.

    More about this item

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management

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