Breinlich, Holger, Soderbery, Anson and Wright, Greg C. (2014) From selling goods to selling services: firm responses to trade liberalization. CEP Discussion Papers (CEPDP1303). London School of Economics and Political Science. Centre for Economic Performance, London, UK.
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Abstract
In the face of trade liberalization domestic firms are often forced out of the market, whereas others adapt and survive. In this paper we focus on a new channel of adaptation, namely the shift toward increased provision of services in lieu of goods production. We exploit variation in EU trade policy to show that lower manufacturing tariffs cause firms to shift into services provision and out of goods production. Additionally, we find that a successful transition is strongly associated with higher firm-level R&D stocks whereas higher physical capital stocks slow the shift into services provision.
| Item Type: | Monograph (Discussion Paper) |
|---|---|
| Official URL: | http://cep.lse.ac.uk/_new/publications/series.asp?... |
| Additional Information: | © 2014 The Authors |
| Divisions: | Centre for Economic Performance |
| Subjects: | H Social Sciences > HD Industries. Land use. Labor |
| JEL classification: | F - International Economics > F1 - Trade > F12 - Models of Trade with Imperfect Competition and Scale Economies F - International Economics > F1 - Trade > F15 - Economic Integration F - International Economics > F2 - International Factor Movements and International Business > F23 - Multinational Firms; International Business |
| Date Deposited: | 16 Dec 2014 12:27 |
| Last Modified: | 13 Sep 2024 20:28 |
| Funders: | Economic and Social Research Council |
| URI: | http://eprints.lse.ac.uk/id/eprint/60523 |
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