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Multi-Product Firms and Flexible Manufacturing in the Global Economy
Open accessAbstract
We present a new model of multi-product firms (MPFs) and flexible manufacturing, and explore its implications in partial and general oligopolistic equilibrium. Globalization affects the scale and scope (or intensive margin and intra-firm extensive margin) of MPFs through a competition effect and a demand effect. The model highlights a new source of gains from trade: productivity increases as firms become "leaner and meaner", concentrating on their core competence; but also a new source of losses from trade: product variety may fall. Our results also hold under free entry, which allows in addition for adjustment along the traditional inter-firm extensive margin.
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Cites
Multiple-Product Firms and Product Switching
Bernard, A. B., Redding, S. J., & Schott, P. K. (2010) · American Economic Review · doi:10.1257/aer.100.1.70 · Cited by 904
Cited by
Bernard, A. B., Jensen, J. B., Redding, S. J., & Schott, P. K. (2007) · Journal of Economic Perspectives · doi:10.1257/jep.21.3.105 · Cited by 2,547
Imported Intermediate Inputs and Domestic Product Growth: Evidence from India
Goldberg, P. K., Khandelwal, A. K., Pavcnik, N., & Topalova, P. (2010) · The Quarterly Journal of Economics · doi:10.1162/qjec.2010.125.4.1727 · Cited by 1,357
Prices, Markups, and Trade Reform
De Loecker, J., Goldberg, P. K., Khandelwal, A. K., & Pavcnik, N. (2016) · Econometrica · doi:10.3982/ecta11042 · Cited by 985
Multiproduct Firms and Trade Liberalization
Bernard, A. B., Redding, S. J., & Schott, P. K. (2011) · The Quarterly Journal of Economics · doi:10.1093/qje/qjr021 · Cited by 872
Market Size, Competition, and the Product Mix of Exporters
MAYER, T., MELITZ, M. J., & OTTAVIANO, G. I. P. (2021) · World Scientific Studies in International Economics · doi:10.1142/9789811233395_0005 · Cited by 717
Metadata
- Authors
- ECKEL, C., & NEARY, J. P.
- Venue
- Review of Economic Studies
- Publisher
- Oxford University Press (OUP)
- Published
- 2009-06-25
- Volume
- 77
- Issue
- 1
- Pages
- 188-217
- ISSN
- 0034-6527 (ISSN-L)
- OpenAlex
- W2134311225
- Cited by
- 660
- References
- 1
- FWCI
- 110.59
- Type
- journal article
- Language
- en
- Open access
- green
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- ECKEL, C., & NEARY, J. P. (2009). Multi-Product Firms and Flexible Manufacturing in the Global Economy. Review of Economic Studies. https://doi.org/10.1111/j.1467-937x.2009.00573.x
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.