Title: Globalization drives strategic product switching
Authors: Miranda, Veerle ×
Moreno Badia, Marialuz
Van Beveren, Ilke #
Issue Date: 2012
Publisher: Springer
Series Title: Review of World Economics vol:148 issue:1 pages:45-72
Abstract: Using firm-level panel data for Estonia, we analyse the impact of international competition on firm dynamics, considering both firm closedown and product switches. We contribute to the literature in two important ways: first, this is the first paper to study the determinants of exit and product switching in an emerging market; and second, we consider explicitly the role of export opportunities. Our results indicate that globalization does not affect firm exit significantly but it is an important factor explaining why firms choose a different core product. Previous studies on industrial countries have shown that product switching has been a defensive strategy against low-cost imports. In contrast, our results suggest that Estonian firms change their core products as an offensive strategy to take advantage of the export opportunities created by a globalized economy.
ISSN: 1610-2878
Publication status: published
KU Leuven publication type: IT
Appears in Collections:LICOS - Centre for Institutions and Economic Performance, Leuven
Research Center of Monetary and Information Economics, Leuven
Department of International Business, Strategy and Economics (IBSE), Campus Carolus Antwerp
Faculty of Economics and Business (FEB) - miscellaneous
× corresponding author
# (joint) last author

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