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on International Activities of Firms |
| By: | Alfredo D'Angelo; Marco Grazzi; Le Li; Daniele Moschella |
| Abstract: | The termination of an exporter-importer (E-I) relationship could challenge the company's export process. What are the consequences on the company's export performance in the foreign country? What role does export experience play in this relationship? The paper explores the overlooked phenomenon of E-I relationship termination and provides robust empirical evidence that the event has negative consequences on the firm's export performance in the foreign country. Despite this unsurprising, yet previously untested finding, our study shows a second important remark i.e., if the exporting firm has prior export experience, it is then able to cope with the negative effect of the termination event. Moreover, we find that the positive effect of prior export experience is only present in the early years of exporting. The results are based on a large longitudinal sample of French firms exporting to foreign buyers in EU countries. Findings are discussed along an in-depth case study to enhance robustness and comprehensiveness. |
| Keywords: | Exporter-Importer (E-I) relationship termination; Critical event; Export experience; Export performance |
| Date: | 2025–10–17 |
| URL: | https://d.repec.org/n?u=RePEc:ssa:lemwps:2025/34 |
| By: | Andrea González (Universidad de Buenos Aires. Facultad de Ciencias Económicas. Buenos Aires, Argentina. CONICET – Universidad de Buenos Aires. Instituto Interdisciplinario de Economía Política (IIEP). Buenos Aires, Argentina.); Juan Carlos Hallak (Universidad de Buenos Aires. Facultad de Ciencias Económicas. Buenos Aires, Argentina. CONICET – Universidad de Buenos Aires. Instituto Interdisciplinario de Economía Política (IIEP). Buenos Aires, Argentina.); Leonardo Iacovone (World Bank.); Santiago Llamas (Analysis Group.); Martín Rossi (Universidad de San Andrés. Buenos Aires, Argentina.) |
| Abstract: | We evaluate an RCT-based export consulting program (Good Exporting Practices) run by Argentina’s national EPA. While average effects are null, impacts are large and significant on the extensive margin for a subset of properly selected firms. |
| Keywords: | Exports; Practices; RCT; Consulting; Management |
| JEL: | F10 F13 F14 H41 L25 O25 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:ake:iiepdt:2025-97 |
| By: | Gabriel Baratte (ENPC - École nationale des ponts et chaussées - IP Paris - Institut Polytechnique de Paris); Lionel Fontagné (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, UP1 - Université Paris 1 Panthéon-Sorbonne, Banque de France); Raphael Lafrogne-Joussier (INSEE - Institut national de la statistique et des études économiques (INSEE), CREST - Centre de Recherche en Économie et Statistique - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - GENES - Groupe des Écoles Nationales d'Économie et Statistique - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - GENES - Groupe des Écoles Nationales d'Économie et Statistique - IP Paris - Institut Polytechnique de Paris - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | In an increasingly uncertain environment, firms are differently exposed to shocks and may or may not bear the cost of reorganizing their value chain by reshoring or offshoring. This paper draws on a survey of French firms about the decision to reorganize part of their value chain between January 2018 and December 2020. Reorganizations prove to be infrequent, made by firms employing a higher proportion of skilled workers, in manufacturing rather than in services, with a predominance of multinational firms. Even though high-skill firms are reorganizing more, reorganized business functions are less skill-intensive, but more intensive in routine tasks. Activities more intensive in intangible capital are more likely to be reorganized within firm's boundaries. Last, besides reshoring in France, activities are located close to France when offshored. India, combining low-average wage and a large endowment of high-skilled workers, receives a disproportionate share of skill intensive activities. |
| Abstract: | Dans un environnement de plus en plus incertain, les entreprises sont différemment exposées aux chocs et supportent ou non le coût de la réorganisation de leur chaîne de valeur en relocalisant ou en délocalisant. Cet article s'appuie sur une enquête menée auprès d'entreprises françaises sur la décision de réorganiser une partie de leur chaîne de valeur entre janvier 2018 et décembre 2020. Les réorganisations s'avèrent peu fréquentes, réalisées par des entreprises employant une plus grande proportion de travailleurs qualifiés, dans l'industrie manufacturière plutôt que dans les services, avec une prédominance d'entreprises multinationales. Même si les entreprises hautement qualifiées se réorganisent davantage, les fonctions réorganisées sont moins intensives en compétences, mais plus intensives en tâches routinières. Les activités plus intensives en capital immatériel sont plus susceptibles d'être réorganisées à l'intérieur des frontières de l'entreprise. Enfin, outre la relocalisation en France, les activités sont localisées à proximité de la France lorsqu'elles sont délocalisées. L'Inde, qui combine un salaire moyen peu élevé et une importante dotation en travailleurs hautement qualifiés, reçoit une part disproportionnée des activités à forte intensité en compétences. |
| Keywords: | Chaînes d'approvisionnement, Relocalisation, Délocalisation, Supply-chains, Reshoring, Offshoring |
| Date: | 2024–11–19 |
| URL: | https://d.repec.org/n?u=RePEc:hal:cesptp:hal-05316482 |
| By: | Giulia Aliprandi; Alice Chiocchetti; Manon Francois; Laure Heidmann |
| Abstract: | Using exhaustive microdata on the worldwide activity of multinational firms from Country-by-Country Reports linked to employer-employee data, we study how profit shifting affects workers' earnings. We estimate that large French multinationals shift 19% of their foreign profits annually to low-tax jurisdictions, resulting in €10.3 billion shifted out of France and €3.7 billion in lost tax revenues. Exploiting France's mandatory profit-sharing policy, which mechanically links subsidiary-level reported profits to workers' compensation, we show that profit shifting reduces annual employees' earnings by 2.6%. Low-income workers are disproportionately affected, the bottom 10% losing 3.2% of wages compared to 2.3% for top 10% earners. Changing the profit-sharing formula to account for global, rather than subsidiary-level, profitability would increase wages by 1.9% overall and 4.1% for workers in profit-shifting subsidiaries. |
| Keywords: | multinational firms, profit shifting, tax revenue, incidence |
| JEL: | F23 H25 H26 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12202 |
| By: | Joachim Wagner (Leuphana Universität Lüneburg, Institut für Volkswirtschaftslehre) |
| Abstract: | Firm characteristics in empirical models for margins of international trade usually enter these models in linear form. If non-linearities do matter and are ignored this leads to biased results. Researchers, however, can never be sure that all possible non-linear relationships are taken care of. A solution is provided by Kernel Regularized Least Squares (KRLS) that uses a machine learning approach to learn the functional form from the data. While in earlier applications the big picture revealed by standard empirical models and KRLS was identical this note presents a case where results from a standard approach and KRLS do differ considerably. |
| Keywords: | Two-way trading firms, firm level data, BEEPS data, kernel regularized least squares (KRLS) |
| JEL: | F14 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:lue:wpaper:433 |
| By: | Ali, Nadia (Columbia University); De Giorgi, Giacomo (University of Geneva); Rahman, Aminur (Asian Development Bank); Verhoogen, Eric (Columbia University) |
| Abstract: | Many countries seek to promote exports by subsidizing market access, but evidence on such efforts has been mixed. We present the first randomized evaluation of a government financial-support program explicitly targeting exports, the Tasdir+ program in Tunisia. The program offered matching grants for fixed market-access costs but not variable costs. Tracking outcomes in administrative data, we find positive effects on exports on average. We find limited impacts on the number of destinations or exported products, which were stated policy targets. The finding that the fixed-cost subsidies expanded exports on the intensive margin but not the extensive margins of destinations or products stands in contrast to the predictions of several workhorse trade models. |
| Keywords: | intensive margin, market access, export promotion |
| JEL: | F14 O14 |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18184 |