The Comparative Advantage of Firms

Boehm, Johannes; Dhingra, Swati; Morrow, John

doi:10.1086/720630

Cited by 21 publications

(14 citation statements)

References 97 publications

(99 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Recent literature on multi-product firms hints at the source of relatedness in technologies. According toBoehm et al (2022), input capabilities determine the evolution of multi-product firms' product spaces. By analyzing India's manufacturing data, they showed that input capabilities affected firms' core competencies, and in turn, core competencies determined product diversification in multi-product firms.…”

mentioning

confidence: 99%

Factors That Affect the Technological Transition of Firms Toward the Industry 4.0 Technologies

et al. 2023

View full text Add to dashboard Cite

This research identifies factors that affect the technological transition of firms toward industry 4.0 (IT) technologies focusing on capabilities and policy impacts using relatedness and complexity measures. For the analysis, a unique dataset was used of Korean manufacturing firms' patents and their financial and market information. Following the Principle of Relatedness, which is a recently shaped empirical principle in the field of economic complexity, economic geography, and regional studies, a technology space is built, and each firm's footprint in the space is traced. Using the firms' technology space can identify those firms that successfully develop new I4 technologies and can examine whether their accumulated capabilities in their previous technology domains positively affect their technological diversification and which factors play a critical role in their transition towards I4. In addition, combining data on whether the firms received government support for R&D activities can help further analyze the role of government policy in supporting firms' knowledge activities in new I4 technologies. Firms with higher related technologies and more government support are more likely to engage in new I4 technologies. This research is expected to inform policymakers who intend to diversify firms' technological capabilities towards I4 technologies.

show abstract

mentioning

confidence: 99%

Factors That Affect the Technological Transition of Firms Toward the Industry 4.0 Technologies

et al. 2023

View full text Add to dashboard Cite

show abstract

“…a change in regulation specific to small and medium size firms). Data on dereservation events come from Boehm, Dhingra, and Morrow (2019). In even columns, we include the whole sample but interact I High M RP K i with an indicator variable Dereservation jt that is equal to 1 after the industry has been dereserved.…”

Section: Discussionmentioning

confidence: 99%

“…3535 To develop our dereservation measure, we use the list of deregulated industries in ASICC from Boehm, Dhingra, and Morrow (2022) and create a crosswalk between ASICC and our definition of industry (NIC 2008) by using the ASI 2008–2009. For each establishment in the ASI, the data report both the NIC code of the establishment and the list of all the products sold at the ASICC level.…”

mentioning

confidence: 99%

Misallocation and Capital Market Integration: Evidence From India

Bau

Matray

2023

ECTA

View full text Add to dashboard Cite

We show that foreign capital liberalization reduces capital misallocation and increases aggregate productivity for affected industries in India. The staggered liberalization of access to foreign capital across disaggregated industries allows us to identify changes in firms' input wedges, overcoming major challenges in the measurement of the effects of changing misallocation. Liberalization increases capital overall. For domestic firms with initially high marginal revenue products of capital (MRPK), liberalization increases revenues by 23%, physical capital by 53%, wage bills by 28%, and reduces MRPK by 33% relative to low MRPK firms. The effects of liberalization are largest in areas with less developed local banking sectors, indicating that inefficiencies in that sector may cause misallocation. Finally, we propose an assumption under which a novel method exploiting natural experiments can be used to bound the effect of changes in misallocation on treated industries' aggregate productivity. These industries' Solow residual increases by 3–16%.

show abstract

“…Our focus on firms' decision to produce knowledge in-house is closest to Teece (1982), who posits that multi-product firms can be rationalized by "organizational knowledge," and Demsetz (1988) who argues that "knowledge is costly to produce, maintain, and use" (p. 157). More recently, Boehm et al (2022) show that common input knowledge facilitates expansion into new products, Atalay et al (2014) argue that the transfer of intangibles across plants is an important motive for integration, Ding (2020) provides evidence that knowledge inputs are shared within multi-industry firms, and Mengus and Michalski (2022) report that certain service workers augment in-house knowledge. Our contribution is to expand the analysis to non-manufacturing, construct a new measure of firms' in-house knowledge, and show that firms with this in-house knowledge both grow and pivot more in response to shocks.…”

Section: Introductionmentioning

confidence: 99%