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Multiproduct firms, firm dynamics, and the productive mix of Brazilian manufacturing firms

Juliana Dias Alves and Mauro Sayar Ferreira
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Juliana Dias Alves: Cedeplar-UFMG
Mauro Sayar Ferreira: Cedeplar-UFMG

No 538, Textos para Discussão Cedeplar-UFMG from Cedeplar, Universidade Federal de Minas Gerais

Abstract: This is a pioneer study on the Brazilian manufacturing sector focused on: i) the role and characteristics of multi-product (MP) plants; and ii) on the determinants and impact of product switching within firms. MP corresponds to 37% of the manufacturing firms, but generates 81% of the output. They employ more workers, are more likely to be exporters, have higher labor productivity and higher TFP. The extensive margin due to adding and retirement of products contributes more to output growth than entry and exit of firms. Among continuing firms, half of the annual output growth (from 2005 to 2009) was originated in firms that switched products. Firms that have net added (dropped) items had higher (smaller) increase in output, in employers, and in the TFP. Higher TFP, more employers, or being exporter increased the probability to only add or only drop items in the future.

Keywords: Multiproduct; scope; total factor productivity; heterogeneous firms (search for similar items in EconPapers)
JEL-codes: D2 F23 L1 L16 L6 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-cse, nep-int and nep-tid
Date: 2016-06
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