Multiproduct Firms, Export Product Scope, and Trade Liberalization: The Role of Managerial Efficiency

Larry Qiu and Miaojie Yu

No DP-2014-06, Working Papers from Economic Research Institute for ASEAN and East Asia (ERIA)

Abstract: This paper provides a theoretical and empirical analysis of the effects of one-sided tariff cuts on firms’ export product scope. The theoretical model explicitly incorporates cost of management in addition to the commonly used production cost. The analysis predicts that the home country’s tariff cut, a home firm’s export product scope expands (shrinks) if the firm’s management cost is low (high). These predictions are supported by our empirical analysis based on data on Chinese firms from 2000 to 2006.

Keywords: Multiproduct firm; Management cost; Managerial efficiency; Export product scope; Trade liberalization; China (search for similar items in EconPapers)
JEL-codes: F12 F13 F15 (search for similar items in EconPapers)
Pages: 53 pages.
Date: 2014-04
New Economics Papers: this item is included in nep-bec, nep-int and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Working Paper: Multiproduct Firms, Export Product Scope, and Trade Liberalization: The Role of Managerial Efficiency (2014)
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