Surviving Globalisation
(2008) In Journal of International Economics 74(2). p.264-277- Abstract
- This paper investigates the effects of international trade on firms' strategies for industry exit, either via closedown, switching industry or being acquired. We use a rich dataset of Swedish firms that extends over two decades to track firm choices between alternative strategies. We find that higher levels of international competition increase the probability of exit by merger and closedown. If trade is more intra-industry in character, the effect of import penetration on the probability of exit is less. The probability of exit by switching industry is higher in revealed comparative disadvantage industries. Finally, we find that the geographical source of international competition is important, the effects of trade on exit being strongest... (More)
- This paper investigates the effects of international trade on firms' strategies for industry exit, either via closedown, switching industry or being acquired. We use a rich dataset of Swedish firms that extends over two decades to track firm choices between alternative strategies. We find that higher levels of international competition increase the probability of exit by merger and closedown. If trade is more intra-industry in character, the effect of import penetration on the probability of exit is less. The probability of exit by switching industry is higher in revealed comparative disadvantage industries. Finally, we find that the geographical source of international competition is important, the effects of trade on exit being strongest when trading partners are other OECD countries. (Less)
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/1384487
- author
- Greenaway, David ; Gullstrand, Joakim LU and Kneller, Richard
- organization
- publishing date
- 2008
- type
- Contribution to journal
- publication status
- published
- subject
- keywords
- Industry dynamics, International trade, Exit, Closure, Merger
- in
- Journal of International Economics
- volume
- 74
- issue
- 2
- pages
- 264 - 277
- publisher
- Elsevier
- external identifiers
-
- wos:000254678800002
- scopus:39849084225
- ISSN
- 1873-0353
- DOI
- 10.1016/j.jinteco.2007.08.005
- language
- English
- LU publication?
- yes
- id
- 1d1dd12a-1f59-44fe-967f-286fe84a5c44 (old id 1384487)
- date added to LUP
- 2016-04-01 11:47:16
- date last changed
- 2025-04-04 14:44:36
@article{1d1dd12a-1f59-44fe-967f-286fe84a5c44,
abstract = {{This paper investigates the effects of international trade on firms' strategies for industry exit, either via closedown, switching industry or being acquired. We use a rich dataset of Swedish firms that extends over two decades to track firm choices between alternative strategies. We find that higher levels of international competition increase the probability of exit by merger and closedown. If trade is more intra-industry in character, the effect of import penetration on the probability of exit is less. The probability of exit by switching industry is higher in revealed comparative disadvantage industries. Finally, we find that the geographical source of international competition is important, the effects of trade on exit being strongest when trading partners are other OECD countries.}},
author = {{Greenaway, David and Gullstrand, Joakim and Kneller, Richard}},
issn = {{1873-0353}},
keywords = {{Industry dynamics; International trade; Exit; Closure; Merger}},
language = {{eng}},
number = {{2}},
pages = {{264--277}},
publisher = {{Elsevier}},
series = {{Journal of International Economics}},
title = {{Surviving Globalisation}},
url = {{http://dx.doi.org/10.1016/j.jinteco.2007.08.005}},
doi = {{10.1016/j.jinteco.2007.08.005}},
volume = {{74}},
year = {{2008}},
}