NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Firm Performance in a Global Market

Jan De Loecker, Pinelopi Koujianou Goldberg

NBER Working Paper No. 19308
Issued in August 2013
NBER Program(s):   IO   ITI   PR

In this article we introduce an empirical framework to analyze how firm performance is affected by increased globalization. Using this framework we discuss recent work on measuring the impact of various shocks firms face in the global marketplace, such as reductions in trade costs (through lowering tariffs and abolishing quotas). Our analytical framework nests most empirical approaches to estimating the impact of trade and industrial policies on firms active in international markets. We identify outstanding issues surrounding the identification of the underlying mechanisms and conclude with suggestions for future research.

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Document Object Identifier (DOI): 10.3386/w19308

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