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Multi-Product Firms, Product Scope, and the Policy of Export Tax Rebate

Author

Listed:
  • Han, Jianyu
  • Ma, Yeqing
  • Tan, Yong

Abstract

Following Nocke(2012), we develop a model to explain how firms allocate their organizational capital to different products. Using the Chinese export and tax rebate data, we find that the reduction of export tax rebate causes contraction of product scope , and the less competitive products are more likely to be dropped.

Suggested Citation

  • Han, Jianyu & Ma, Yeqing & Tan, Yong, 2014. "Multi-Product Firms, Product Scope, and the Policy of Export Tax Rebate," MPRA Paper 54709, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:54709
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    Keywords

    Following Nocke(2012); we develop a model to explain how firms allocate their organizational capital to different products. Using the Chinese export and tax rebate data; we find that the reduction of export tax rebate causes contraction of product scope ; and the less competitive products are more likely to be dropped.;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General

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