Import competition, productivity and multi-product firms

Arbeitspapier

Using detailed firm-product level quarterly data, we develop an estimation framework of a Multi-Product Production Function (MPPF) and analyse firm-product level TFP estimations at various levels (industries, products). After documenting our estimation results, we relate productivity estimates with import competition, using firm and product level measures of import competition. We find that if productivity at the firm level tends to positively react to increased import competition, the multi-product firms response varies according to the relative importance of the product that faces stronger import competition in the firm’s product portfolio. When import competition associated to the main product of a firm increases, the firm tend to increase its efficiency in producing that core product, in which it has a productivity advantage. However, when the degree of foreign competition increases for non core products of a firm, it tends to lower its efficiency in producing those goods.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: NBB Working Paper ; No. 268

Classification and Topics

• Classification: Wirtschaft ; Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity ; Firm Organization and Market Structure ; Firm Performance: Size, Diversification, and Scope
• Subject: multi-product production function ; productivity ; import competition ; Mehrproduktfertigung ; Produktionsfunktion ; Produktivität ; Import ; Internationaler Wettbewerb ; Industrie ; Schätzung ; Belgien

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Dhyne, Emmanuel ; Petrin, Amil ; Smeets, Valerie ; Warzynski, Frederic
• Event: Veröffentlichung
• (who): National Bank of Belgium
• (where): Brussels
• (when): 2014

Further information

• Handle: http://hdl.handle.net/10419/144480
• Last update: 10.03.2025, 11:42 AM CET