Measuring the Benefits of Foreign Product Variety with an Accurate Variety Set

Bruce Blonigen and Anson Soderbery ()

Chapter 15 in Foreign Direct Investment, 2019, pp 501-538 from World Scientific Publishing Co. Pte. Ltd.

Abstract: Recent studies have used import data to assess the impact of foreign varieties on domestic prices and welfare. We employ a market-based data set on the U.S. automobile market that allows us to define goods varieties at a more precise level, as well as discern location of production and ownership of varieties. Our estimates of price and welfare changes from new varieties in the U.S. automobile sector are twice as large as standard estimates when using our detailed market-based data.We also show that new varieties introduced by foreign-owned affiliates provided an additional 70% welfare gain during our sample.

Keywords: Foreign Direct Investment; Multinational Enterprises; Mergers and Acquisitions; Greenfield; Trade Policy; Taxation; Spillovers; Offshoring; Wage Inequality; Firm-Specific Assets; Antidumping; Tariff-jumping; Industrial Organization; Ownership-Location-Internalization Theory (search for similar items in EconPapers)
JEL-codes: F02 F13 F6 (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.worldscientific.com/doi/pdf/10.1142/9789813277014_0015 (application/pdf)
https://www.worldscientific.com/doi/abs/10.1142/9789813277014_0015 (text/html)
Ebook Access is available upon purchase.

Related works:
Journal Article: Measuring the benefits of foreign product variety with an accurate variety set (2010)
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:wsi:wschap:9789813277014_0015

Ordering information: This item can be ordered from

Access Statistics for this chapter

More chapters in World Scientific Book Chapters from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().