Multiple-Product Firms and Product Switching

• 成果类型: Article
• 署名作者: Bernard, Andrew B.; Redding, Stephen J.; Schott, Peter K.
• 署名单位: Dartmouth College; University of London; London School Economics & Political Science; Yale University
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.100.1.70
• 发表日期: 2010
• 页码: 70-97
• 关键词: dynamics; EXIT; selection; turnover; GROWTH; output; index; entry; TRADE; size

摘要

This paper examines the frequency, pervasiveness, and determinants of product switching by US manufacturing firms. We find that one-half of firms alter their mix of five-digit SIC products every five years, that product switching is correlated with both firm- and firm-product attributes, and that product adding and dropping induce large changes in firm scope. The behavior we observe is consistent with a natural generalization of existing theories of industry dynamics that incorporates endogenous product selection within firms. Our findings suggest that product switching contributes to a reallocation of resources within firms toward their most efficient use.