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Porträttfoto

Joakim Gullstrand

Dean, Professor

Porträttfoto

Surviving Globalisation

Author

  • David Greenaway
  • Joakim Gullstrand
  • Richard Kneller

Summary, in English

This paper investigates the effects of international trade on firms' strategies for industry exit, either via closedown, switching industry or being acquired. We use a rich dataset of Swedish firms that extends over two decades to track firm choices between alternative strategies. We find that higher levels of international competition increase the probability of exit by merger and closedown. If trade is more intra-industry in character, the effect of import penetration on the probability of exit is less. The probability of exit by switching industry is higher in revealed comparative disadvantage industries. Finally, we find that the geographical source of international competition is important, the effects of trade on exit being strongest when trading partners are other OECD countries.

Department/s

  • Department of Economics

Publishing year

2008

Language

English

Pages

264-277

Publication/Series

Journal of International Economics

Volume

74

Issue

2

Document type

Journal article

Publisher

Elsevier

Topic

  • Economics

Keywords

  • Industry dynamics
  • International trade
  • Exit
  • Closure
  • Merger

Status

Published

ISBN/ISSN/Other

  • ISSN: 1873-0353