IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper

“The Dynamics of Firms’ Product Portfolio in Response to Low-Cost Country Competition : An Empirical Assessment”

  • Claire LELARGE, Benjamin Nefussi

    (Crest)

Registered author(s):

    We rely on a new dataset containing detailed information about firm level productiondecomposition and innovation activities in order to investigate whether the observed aggregatereallocation of French production may be driven (at least partly) by firm level product portfoliostrategies, in particular when firms experience a high competitive pressure arising from low-costcountries. Using an instrumental variable strategy, we obtain that firms experiencing a high lowcostcountry competitive pressure are significantly more diversified in their productions, and areinvolved in (either) more frequent or higher reallocation of their product portfolios towardsproducts they were not previously producing. Further analysis shows that more productive firmsonly are able to introduce true product innovations, which may explain why they achieve highersurvival rates.

    If you experience problems downloading a file, check if you have the proper application to view it first. 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.

    File URL: http://www.crest.fr/images/doctravail/2008-27.pdf
    File Function: Crest working paper version
    Download Restriction: no

    Paper provided by Centre de Recherche en Economie et Statistique in its series Working Papers with number 2008-27.

    as
    in new window

    Length: 41
    Date of creation: 2008
    Date of revision:
    Handle: RePEc:crs:wpaper:2008-27
    Contact details of provider: Postal:
    15 Boulevard Gabriel Peri 92245 Malakoff Cedex

    Phone: 01 41 17 60 81
    Web page: http://www.crest.fr

    More information through EDIRC

    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.:

    as in new window
    1. Rivers, Douglas & Vuong, Quang H., 1988. "Limited information estimators and exogeneity tests for simultaneous probit models," Journal of Econometrics, Elsevier, vol. 39(3), pages 347-366, November.
    2. Carsten Eckel & J. Peter Neary, 2010. "Multi-Product Firms and Flexible Manufacturing in the Global Economy," Review of Economic Studies, Oxford University Press, vol. 77(1), pages 188-217.
    3. Lionel Fontagné & Guillaume Gaulier & Soledad Zignago, 2008. "Specialization across varieties and North-South competition," Economic Policy, CEPR;CES;MSH, vol. 23, pages 51-91, 01.
    4. Bernard, Andrew B. & Jensen, J. Bradford & Schott, Peter K., 2006. "Survival of the best fit: Exposure to low-wage countries and the (uneven) growth of U.S. manufacturing plants," Journal of International Economics, Elsevier, vol. 68(1), pages 219-237, January.
    5. Nicholas Bloom & Mirko Draca & John Van Reenen, 2016. "Trade Induced Technical Change? The Impact of Chinese Imports on Innovation, IT and Productivity," Review of Economic Studies, Oxford University Press, vol. 83(1), pages 87-117.
    6. Thierry Mayer & Soledad Zignago, 2011. "Notes on CEPII’s distances measures: The GeoDist database," Working Papers 2011-25, CEPII research center.
    7. Thoenig, Mathias & Verdier, Thierry, 2002. "A Theory of Defensive Skill-based Innovation and Globalization," CEPR Discussion Papers 3416, C.E.P.R. Discussion Papers.
    8. Jeffrey M. Wooldridge, 2001. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262232197.
    9. Hallak, Juan Carlos, 2006. "Product quality and the direction of trade," Journal of International Economics, Elsevier, vol. 68(1), pages 238-265, January.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:crs:wpaper:2008-27. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Florian Sallaberry)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.