Globalization and Multiproduct Firms

Volker Nocke and Stephen Yeaple

No 19409, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We present an international trade model with multiproduct firms. Firms are heterogeneously endowed with two types of capabilities that jointly determine the trade-off within firms between managing a large portfolio of products and producing at low marginal cost. The model can explain many of the documented cross-sectional correlations in firm performance measures, including why larger firms are more productive and more diversified, and yet more diversified firms trade at a discount. Globalization is shown to induce heterogeneous responses across firms in terms of scope and productivity, some of which are consistent with existing empirical work, while others are potentially testable.

JEL-codes: F12 F15 L25 (search for similar items in EconPapers)
Date: 2013-09
New Economics Papers: this item is included in nep-bec, nep-cse and nep-int
Note: ITI
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Citations: View citations in EconPapers (3)

Published as Volker Nocke & Stephen Yeaple, 2014. "Globalization And Multiproduct Firms," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 55, pages 993-1018, November.

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Related works:
Journal Article: GLOBALIZATION AND MULTIPRODUCT FIRMS (2014)
Working Paper: Globalization and multiproduct firms (2013)
Working Paper: Globalization and Multiproduct Firms (2013)
Working Paper: Globalization and Multiproduct Firms (2012)
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