Firm Performance in a Global Market
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.
We would like to thank Tim Bresnahan for early conversations on the topic, and Channing Verbeck Jr. for excellent research assistance. This paper is not intended to be a comprehensive literature review. Instead, we discuss a selected set of papers from the perspective of our empirical framework that nests the productivity and pass-through literatures spanning Industrial Organization, International Trade and International Macro. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.
Jan De Loecker & Pinelopi Koujianou Goldberg, 2014. "Firm Performance in a Global Market," Annual Review of Economics, Annual Reviews, vol. 6(1), pages 201-227, 08. citation courtesy of