New Global Economics Research from Catholic University of Leuven Discussed
2012 APR 13 - (VerticalNews.com) -- According to the authors of recent research published in the journal Review of World Economics, "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," wrote V. Miranda and colleagues, Catholic University of Leuven.
The researchers concluded: "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."
Miranda and colleagues published their study in Review of World Economics (Globalization drives strategic product switching. Review of World Economics, 2012;148(1):45-72).
For additional information, contact V. Miranda, Catholic University of Leuven, LICOS, B-3000 Louvain, Belgium.
The publisher's contact information for the journal Review of World Economics is: Springer, 233 Spring St, New York, NY 10013, USA.
Keywords: City:Louvain, Country:Belgium, Region:Europe, Global Economics
This article was prepared by VerticalNews Economics editors from staff and other reports. Copyright 2012, VerticalNews Economics via VerticalNews.com.