IDEAS home Printed from https://ideas.repec.org/p/udc/wpaper/wp366.html
   My bibliography  Save this paper

Product Mix Changes and Performance in Chilean Plants

Author

Listed:
  • Roberto Alvarez
  • Claudio Bravo-Ortega
  • Lucas Navarro

Abstract

A recent theoretical literature has given relevance to the study of the relationship between product mix changes and firm productivity. In this paper, taking advantage of a rich dataset for manufacturing plants in Chile during the period 1996-2000, we use matching techniques and a difference in difference approach to estimate the causal impact of product mix changes on productivity and other plant-specific outcomes. Our results suggest a positive and increasing impact of product mix changes on total factor productivity and labor productivity after two years the product mix changes are introduced. We also find positive effects on employment and sales. Nevertheless, this positive effect is mainly driven by firms that add and drop products at the same time. Our results are in line with recent theoretical developments on the study of productivity determinants on multiproduct firms and illustrate how products creation and destruction are a source of within-firm productivity growth.

Suggested Citation

  • Roberto Alvarez & Claudio Bravo-Ortega & Lucas Navarro, 2012. "Product Mix Changes and Performance in Chilean Plants," Working Papers wp366, University of Chile, Department of Economics.
  • Handle: RePEc:udc:wpaper:wp366
    as

    Download full text from publisher

    File URL: http://www.econ.uchile.cl/uploads/publicacion/d900bad2a536f5adc863da0057034cb06637345b.pdf
    Download Restriction: no

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Roberto Alvarez & Andrés Zahler, 2014. "Export Mix Changes and Firm Performance: Evidence from Chile," IDB Publications (Working Papers) 85354, Inter-American Development Bank.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:udc:wpaper:wp366. 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: (Mohit Karnani). General contact details of provider: http://edirc.repec.org/data/deuclcl.html .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.