Low-Cost Import Competition: Do Small Firms Respond Differently?
10 Pages Posted: 14 Apr 2010
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Low-Cost Import Competition: Do Small Firms Respond Differently?
Number of pages: 10
Posted: 14 Apr 2010
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Low-Cost Import Competition: Do Small Firms Respond Differently?
Number of pages: 10
Posted: 30 Jan 2011
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Date Written: April 1, 2010
Abstract
We investigate the impact of import competition from low-cost countries on the exit of domestic firms from the manufacturing industries of eight European countries. We find a significant positive impact on the exit of large firms, while small firms are not directly affected. The empirical evidence is consistent with small firms having a comparative advantage in terms of flexibility and niche-filling capabilities, on a narrower relevant geographic market.
Keywords: globalization, low-cost import competition, firm exit
JEL Classification: F14, L25, L6
Suggested Citation: Suggested Citation
Colantone, Italo and Coucke, Kristien and Sleuwaegen, Leo Evariste, Low-Cost Import Competition: Do Small Firms Respond Differently? (April 1, 2010). Available at SSRN: https://ssrn.com/abstract=1588662 or http://dx.doi.org/10.2139/ssrn.1588662
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