Boehm, Johannes, Dhingra, Swati and Morrow, John (2019) The comparative advantage of firms. CEP Discussion Papers (1614). Centre for Economic Performance, LSE, London, UK.
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Abstract
Resource based theories propose that firms grow by diversifying into products which use common capabilities. We provide evidence for common input capabilities using a policy that removed entry barriers in input markets to show that the similarity of a firm's and industry's input mix determine firm production choices. We model industry choice and economies of scope from input capabilities. Estimating the model for Indian manufacturing, input complementarities make firms 5% more likely to produce in an industry and are quantitatively as important as time-invariant drivers of co-production rates. Upstream entry barriers were equivalent to a 9.5% tariff on inputs.
| Item Type: | Monograph (Discussion Paper) |
|---|---|
| Official URL: | http://cep.lse.ac.uk/_new/publications/series.asp?... |
| Additional Information: | © 2022 The Authors, revised |
| Divisions: | Economics Centre for Economic Performance |
| Subjects: | H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HF Commerce H Social Sciences > HB Economic Theory T Technology > T Technology (General) |
| JEL classification: | F - International Economics > F1 - Trade > F11 - Neoclassical Models of Trade L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L25 - Firm Performance: Size, Diversification and Scope, Age, Profit, and Sales O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O30 - General M - Business Administration and Business Economics; Marketing; Accounting > M2 - Business Economics > M20 - General |
| Date Deposited: | 29 Nov 2019 11:12 |
| Last Modified: | 04 Oct 2024 07:15 |
| URI: | http://eprints.lse.ac.uk/id/eprint/102596 |
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