The short and long-run impact of globalization if firms differ in factor input ratios

Namini, Julian Emami

doi:10.1016/j.jedc.2013.09.005

Cited by 3 publications

(3 citation statements)

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“…The papers that come closest to ours are Emami Namini (), Crozet and Trionfetti () and Furusawa and Sato (). All of these contributions develop models of trade in which firms within the same sector differ in factor intensities.…”

Section: Introductionmentioning

confidence: 64%

“…All of these contributions develop models of trade in which firms within the same sector differ in factor intensities. Emami Namini () considers a setting in which the factor intensity parameter is randomly assigned to firms and studies the impact of trade liberalization on welfare and growth. Because of the randomness of the technology assignment, the relative mass of firms with different factor intensities is given exogenously, whereas the study of the effect of trade liberalization on firm selection is the focus of this paper.…”

Section: Introductionmentioning

confidence: 99%

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A model of firm heterogeneity in factor intensities and international trade

Namini

Facchini²,

López

2015

Canadian J of Economics

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Empirical evidence suggests that exporters -besides being more productive -are significantly more skilled labor intensive than non-exporters. In a setting which captures both these features, we show that the firm selection induced by trade liberalization works along two dimensions. First, export growth increases competition for skilled labor. This leads to the exit of some of the skilled labor intensive firms, while benefitting unskilled labor intensive ones. Second, within the group of firms with the same factor intensities, the reallocation of factors is towards the exporters. We show that the increased competition for skilled labor dampens the positive effect of trade liberalization on sector-wide TFP and real income.JEL classification numbers: F12, F16, L11.

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Section: Introductionmentioning

confidence: 64%

Section: Introductionmentioning

confidence: 99%

A model of firm heterogeneity in factor intensities and international trade

Namini

Facchini²,

López

2015

Canadian J of Economics

Self Cite

View full text Add to dashboard Cite

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“…However, global activities positively impact companies' domestic productivity (Hayakawa et al, 2012). Following an effective and high-level adaptive strategy in an increasingly globalized environment (Underwood, 2012), companies generally engender significant economic benefits, such as relative returns on capital and technological innovation (Baldwin and Yan, 2021;Emami Namini, 2014). Meanwhile, firms with slack resources experience more significant performance improvements than firms without these resources, under globalization (Pangarkar and Wu, 2012).…”

Section: Granger Causality Testsmentioning

confidence: 99%

The effects of globalization on family firms' business model in Europe

Qin

Wang

et al. 2022

IJEBR

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Purpose The debate over differences in the behaviors of firms facing globalization is ongoing. This study examines whether globalization impacts the behavior of family firms and if this influence differs between family and non-family firms. Design/methodology/approach Drawing on panel data from the Amadeus database on 62 family firms and 98 non-family firms in Europe, the authors employ panel vector autoregression estimation and the Wald test of Granger causality to verify our conjecture. Additional impulse response functions and the forecast error variance decomposition technique were applied to illustrate complementary shock dynamics. Additionally, the KOF globalization index is used as a proxy for globalization. Findings The results show that globalization visibly impacts family and non-family firms, but the polarity and extent of the effect are different. The authors demonstrate that family firms are in a more favorable position regarding globalization and are less vulnerable to the adverse effects of the globalization process. In contrast, non-family firms fare worse, generating adverse effects. Non-family firms take a more open stance toward globalization than family firms' more conservative behaviors. Research limitations/implications Of course, there are some limitations to the work presented in this paper. On the one hand, the authors’ data span only ten years due to data limitations. This causes the generalizability of the results to be hindered. Therefore, the authors encourage scholars to collect more time series data to increase confidence in the empirical results in future studies. On the other hand, the selection of proxy indicators concerning family firm behavior is mainly focused on financial and employment facets. A multidimensional selection of indicators could make the findings of this study more convincing. Despite its limitations, the study certainly adds to the authors’ understanding of its behavior and globalization activities. Practical implications The authors’ findings have twofold theoretical and practical implications, as they highlight the necessity of developing specific policies aimed at reducing the gap between family and non-family facing globalization and promoting sustainable operations of non-family firms. Although family firms tend to be more frugal and conservative in their overall decision-making, it should be acknowledged that stockholder and stakeholder interest-oriented corporate management policies have made them more capable of steadily improving corporate performance in the sweep of globalization. Social implications To this end, this study deepens the authors’ understanding of the theory of global governance of family firms. It also provides possible paths and directions for future theoretical research on family firms. Globalization affects both family and non-family firms, but our results suggest that family firms are better able to withstand the adverse effects of globalization shocks and adopt efficient governance paths and strategic thinking to gain a competitive advantage. In this regard, the authors encourage non-family firms to actively learn from family firms' operational practices and systems to achieve better adaptability. Originality/value This study provides strong empirical evidence on the effectiveness of family firms' governance patterns and business behavior under globalization. Additionally, this study also reveals that managers can learn from the practical experience of family firms to help them confront business crises and gain a sustainable competitive advantage.

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Export mode, firm heterogeneity, and source country characteristics

Davies

Jeppesen

2015

Rev World Econ

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The short and long-run impact of globalization if firms differ in factor input ratios

Cited by 3 publications

References 30 publications

A model of firm heterogeneity in factor intensities and international trade

A model of firm heterogeneity in factor intensities and international trade

The effects of globalization on family firms' business model in Europe

Export mode, firm heterogeneity, and source country characteristics

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