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Firm Performance in a Global Market

Author

Listed:
  • Jan De Loecker

    (Department of Economics, Princeton University, Princeton, New Jersey 08544
    Centre for Economic and Policy Research, London EC1V 3PZ, United Kingdom
    National Bureau of Economic Research, Cambridge, Massachusetts 02138)

  • Pinelopi Koujianou Goldberg

    (Department of Economics, Yale University, New Haven, Connecticut 06520
    National Bureau of Economic Research, Cambridge, Massachusetts 02138)

Abstract

In this article, we introduce an empirical framework to analyze how firm performance is affected by increased globalization. Using this framework, we discuss recent work on measuring the impact of various shocks firms face in the global marketplace, such as reductions in trade costs (through lowering tariffs and abolishing quotas). Our analytical framework nests most empirical approaches to estimating the impact of trade and industrial policies on firms active in international markets. We identify outstanding issues surrounding the identification of the underlying mechanisms and conclude with suggestions for future research.

Suggested Citation

  • Jan De Loecker & Pinelopi Koujianou Goldberg, 2014. "Firm Performance in a Global Market," Annual Review of Economics, Annual Reviews, vol. 6(1), pages 201-227, August.
    • Handle: RePEc:anr:reveco:v:6:y:2014:p:201-227
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    productivity; markups; pass-through; trade reforms;
    All these keywords.

    JEL classification:

    • D2 - Microeconomics - - Production and Organizations
    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • F00 - International Economics - - General - - - General
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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