Multi-Product Firms, Product Scope, and the Policy of Export Tax Rebate

Han, Jianyu and Ma, Yeqing and Tan, Yong (2014): Multi-Product Firms, Product Scope, and the Policy of Export Tax Rebate.

Abstract

Following Nocke(2012), we develop a model to explain how firms allocate their organizational capital to different products. Using the Chinese export and tax rebate data, we find that the reduction of export tax rebate causes contraction of product scope , and the less competitive products are more likely to be dropped.

• Item Type: MPRA Paper
• Language: English
• Keywords: Following Nocke(2012), we develop a model to explain how firms allocate their organizational capital to different products. Using the Chinese export and tax rebate data, we find that the reduction of export tax rebate causes contraction of product scope , and the less competitive products are more likely to be dropped.
• Subjects: F - International Economics > F1 - Trade > F10 - General; F - International Economics > F1 - Trade > F14 - Empirical Studies of Trade; L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L10 - General

References

Bernard, A.B., Redding, S.J., Schott, P.K., 2010. Multiple-product �rms and product switching. American Economic Review 100, 70-97.