Globalization drives strategic product switching /
Using firm-level data for Estonia for the years 1997-2005, we analyze the impact of international competition on firm dynamics, considering both firm closedown and product switching. We contribute to the literature in two important ways: (1) this is the first paper to study the determinants of exit...
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| Main Authors: | , , |
| Corporate Author: | |
| Format: | Electronic eBook |
| Language: | English |
| Published: |
Washington, D.C. :
International Monetary Fund,
2008
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| Series: | IMF working paper ;
WP/08/246. |
| Subjects: | |
| Local Note: | ProQuest Ebook Central |
| Summary: | Using firm-level data for Estonia for the years 1997-2005, we analyze the impact of international competition on firm dynamics, considering both firm closedown and product switching. We contribute to the literature in two important ways: (1) this is the first paper to study the determinants of exit and product switching in an emerging market; and (2) we consider explicitly the role of export opportunities. Our results indicate that globalization does not affect firm exit significantly but it is an important factor explaining product switching. Previous studies on industrial countries have shown that product switching has been a defensive strategy against low-cost imports. In contrast, our results suggest that Estonian firms have switched products as an offensive strategy to take advantage of the export opportunities created by trade liberalization. |
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| Item Description: | At head of title: European Department. "October 2008." |
| Physical Description: | 1 online resource (44 pages) : illustrations |
| Format: | Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. |
| Bibliography: | Includes bibliographical references (pages 41-44). |
| ISBN: | 1282841971 9781282841970 9781452796499 1452796491 9781451915570 1451915578 1462370926 9781462370924 145187104X 9781451871043 9786612841972 6612841974 |
| Language: | English. |
| Reproduction Note: | Electronic reproduction. |
| Source of Description, Etc. Note: | Print version record. |
| Action Note: | digitized |
