Cookies?
Library Header Image
LSE Research Online LSE Library Services

The comparative advantage of firms

Boehm, Johannes, Dhingra, Swati and Morrow, John (2019) The comparative advantage of firms. CEP Discussion Papers (1614). Centre for Economic Performance, LSE, London, UK.

[img] Text (dp1614) - Published Version
Download (837kB)

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: 18 Mar 2024 02:03
URI: http://eprints.lse.ac.uk/id/eprint/102596

Actions (login required)

View Item View Item

Downloads

Downloads per month over past year

View more statistics