The Comparative Advantage of Firms - Sciences Po Access content directly
Journal Articles Journal of Political Economy Year : 2021

The Comparative Advantage of Firms

Abstract

Resource-based theories propose that firms grow by diversifying into products that use common capabilities. We provide evidence for common-input capabilities, using a policy that removed entry barriers in input markets to show that the similarity of a firm’s and an industry’s input mix determines firm production choices. We model industry choice and economies of scope from input capabilities. When the model is estimated for Indian manufacturing, input complementarities make firms 5% more likely to produce in an industry and are quantitatively as important as time-invariant drivers of coproduction rates. Upstream entry barriers were equivalent to a 9.5% tariff on inputs.
Fichier principal
Vignette du fichier
2021_boehm_dhingrab_morrow_the_comparative_advantage_of_firms.pdf (673.22 Ko) Télécharger le fichier
Origin Files produced by the author(s)

Dates and versions

hal-03877257 , version 1 (29-11-2022)

Licence

Identifiers

Cite

Johannes Boehm, Swati Dhingra, John Morrow. The Comparative Advantage of Firms. Journal of Political Economy, 2021, 130 (12), ⟨10.1086/720630⟩. ⟨hal-03877257⟩
38 View
10 Download

Altmetric

Share

Gmail Mastodon Facebook X LinkedIn More