Globalization and endogenous firm scope
By: Volker Nocke, Stephen Yeaple
Contributors: Yeaple, Stephen; National Bureau of Economic Research
Series: NBER working paper series -- working paper 12322; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 12322.
Publisher: National Bureau of Economic Research
Published: 2006
Place of publication: Cambridge, MA
Language: eng
Format: [electronic resource] /
Description: "We develop a theory of multiproduct firms to analyze the effects of globalization on the distributions of firm size, scope, and productivity.  Our model explains two puzzles.  First, it explains the well-known size-discount puzzle: large firms have lower values of Tobin's Q than small firms.  Second, it explains the globalization-skewness puzzle documented in the empirical part of our paper: a multilateral reduction in trade costs leads to a flattening of the size distribution of firms.  In our model, globalization not only affects the distribution of observed productivities but also productivity at the firm level"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 6/29/2006.

Includes bibliographical references.

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