Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/75017
Authors: 
Badia, Marialuz Moreno
Slootmaekers, Veerle
Van Beveren, Ilke
Year of Publication: 
2008
Series/Report no.: 
LICOS Discussion Paper 209
Abstract: 
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. This paper contributes to the literature in two important ways: (1) this is the first paper to study the detfirminants of exit and product switching in an emerging market; and (2) we consider explicitly the role of export opportunities. Our results indicate that globalization affects firm closure and product switching differently. In particular, firm exit is positively related to the degree of intra-industry trade while the decision to switch is affected only by the conditions in export markets. This is in sharp contrast to previous findings for industrial countries.
Subjects: 
Product switching
Exit
International trade
Comparative Advantage
JEL: 
D21
D24
F18
L25
L60
Document Type: 
Working Paper

Files in This Item:
File
Size
345.31 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.