Vertical Ownership and Trade: Firm-level evidence from France
Résumé
In this paper, we study the impact of acquiring equity shares in intermediaries
on export performance. We develop a trade model with vertically linked industries
where the decisions to export and to own its intermediary are endogenous that we
test on French data at the rm level. We show that: forward acquisition enables
manufacturers to manage the double marginalization problem and to enjoy lower
costs to foreign market access, so that the probability of exporting and export sales
are higher for a rm with a participation in intermediaries. In addition, vertical
ownership creates a market externality among manufacturers due to a reallocation
of market shares from small rms to large rms forcing some low-productivity rms
to exit from foreign markets.
Domaines
Sciences du Vivant [q-bio]
Origine : Fichiers produits par l'(les) auteur(s)