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Internationalization strategies of multi-product firms: The role of technology

Daniel Baumgarten, Michael Irlacher () and Karin Mayr-Dorn ()

No 2020-14, Economics working papers from Department of Economics, Johannes Kepler University Linz, Austria

Abstract: High-performance frrms typically have two features in common: i) they produce in more than one country and ii) they produce more than one product. In this paper, we analyze the internationalization strategies of multi-product frrms at the product-level. We find that the most productive frrms sell core varieties via foreign direct investment (FDI) and export products with intermediate productivity. Shocks to trade costs and technology affect the endogenous decision to export or produce abroad at the product-level and, in turn, the relative productivity between parents and afiliates.

Keywords: Multi-product firms; FDI; exports; exible manufacturing (search for similar items in EconPapers)
JEL-codes: F12 F23 L25 L11 (search for similar items in EconPapers)
Date: 2020-06
New Economics Papers: this item is included in nep-bec, nep-cse and nep-int
Note: English
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