New Dimensions of Adjustment to Globalization

Marialuz Moreno Badia, Veerle Slootmaekers and Ilke Van Beveren
Authors registered in the RePEc Author Service: Veerle Miranda

LICOS Discussion Papers from LICOS - Centre for Institutions and Economic Performance, KU Leuven

Abstract: Using firm-level data for Estonia for the years 1997-2005, we analyze the impact of international competition on firm dynamics, considering both firm closedown and product switching. This paper contributes to the literature in two important ways: (1) this is the first paper to study the determinants of exit and product switching in an emerging market; and (2) we consider explicitly the role of export opportunities. Our results indicate that globalization affects firm closure and product switching differently. In particular, firm exit is positively related to the degree of intra-industry trade while the decision to switch is affected only by the conditions in export markets. This is in sharp contrast to previous findings for industrial countries.

Keywords: Product switching; Exit; International trade; Comparative Advantage (search for similar items in EconPapers)
JEL-codes: D21 D24 F18 L25 L60 (search for similar items in EconPapers)
Date: 2008
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.econ.kuleuven.be/licos/publications/dp/dp209.pdf

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:lic:licosd:20908

Access Statistics for this paper

More papers in LICOS Discussion Papers from LICOS - Centre for Institutions and Economic Performance, KU Leuven Contact information at EDIRC.
Bibliographic data for series maintained by ().