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Multi-product Firms and Flexible Manufacturing in the Global Economy.

Abstract:

We present a new model of multi-product firms (MPFs) and flexible manufacturing, and explore its implications in partial and general oligopolistic equilibrium. Globalization affects the scale and scope (or intensive margin and intra-firm extensive margin) of MPFs through a competition effect and a demand effect. The model highlights a new source of gains from trade: productivity increases as firms become "leaner and meaner", concentrating on their core competence; but also a new source of los...

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Authors


Carsten Eckel More by this author
J. Peter Neary More by this author
Journal:
Review of Economic Studies
Volume:
77
Issue:
1
Publication date:
2010
DOI:
URN:
uuid:5d3ce5d1-d0b0-472f-abb2-0bc01a9c57eb
Local pid:
oai:economics.ouls.ox.ac.uk:14610
Language:
English

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