publication . Article . 2012

International Competition and Small-Firm Exit in US Manufacturing

Robert M. Feinberg;
Open Access
  • Published: 09 Jul 2012 Journal: Eastern Economic Journal, volume 39, issue 3, pages 402-414
Abstract
This study analyzes both the determinants of small firm exit rates in US manufacturing over the 1989–2004 period, especially the reaction of domestic firms to the nature of foreign competition as measured by industry-specific real exchange rate movements (interacted with import penetration by industry). These international pressures seem to lead to increased rates of smallest-firm exit in manufacturing, though the magnitudes of these effects are smaller than sometimes discussed. However, high-tech industries avoid much of this impact; patents and a reputation for innovation may shield a small firm somewhat from lower-priced foreign competitors.
Subjects
free text keywords: Economics and Econometrics, Business, Reputation, media_common.quotation_subject, media_common, Barriers to exit, Industrial organization, Exchange rate, Small firm, Competitor analysis
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