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Low-cost import competition. Do small firms respond differently?
Colantone, Italo Coucke, Kristien Sleuwaegen, Leo
Colantone, Italo
Coucke, Kristien
Sleuwaegen, Leo
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Publication Type
Working paper
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Supervisor
Publication Year
2010
Journal
Book
Publication Volume
Publication Issue
6
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Publication End page
Publication Number of pages
14
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Abstract
We investigate the impact of import competition from low-cost countries on the exit of domestic firms from the manufacturing industries of eight European countries. We find a significant positive impact on the exit of large firms, while small firms are not directly affected. The empirical evidence is consistent with small firms having a comparative advantage in terms of flexibility and niche-filling capabilities, on a narrower relevant geographic market
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Keywords
Entrepreneurship, Strategy, Globalization, Low-Cost Import Competition, Firm Exit