IDEAS home Printed from https://ideas.repec.org/a/bla/jemstr/v21y2012i2p469-491.html
   My bibliography  Save this article

Market Expansion and Productivity Growth: Do New Domestic Markets Matter as Much as New International Markets?

Author

Listed:
  • John Baldwin
  • Beiling Yan

Abstract

This paper asks how market expansion contributes to productivity growth. It investigates whether entry to both new international markets and new domestic markets is associated with greater productivity growth. It also examines whether exit from export markets is necessarily associated with deteriorating performance or whether it too can lead to success if associated with movements to new markets. Finally, the paper drills down into the strategic stance of firms that move to new markets to examine the strategic differences that set them apart from their compatriots that do not find themselves able to adapt.

Suggested Citation

  • John Baldwin & Beiling Yan, 2012. "Market Expansion and Productivity Growth: Do New Domestic Markets Matter as Much as New International Markets?," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 21(2), pages 469-491, June.
    • Handle: RePEc:bla:jemstr:v:21:y:2012:i:2:p:469-491
    DOI: j.1530-9134.2012.00330.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1530-9134.2012.00330.x
    Download Restriction: no
    File URL: https://libkey.io/j.1530-9134.2012.00330.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. John R. Baldwin & David Sabourin, 2002. "Advanced technology use and firm performance in Canadian manufacturing in the 1990s," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 11(4), pages 761-789, August.
    2. Henry Kaiser, 1958. "The varimax criterion for analytic rotation in factor analysis," Psychometrika, Springer;The Psychometric Society, vol. 23(3), pages 187-200, September.
    3. Joachim Wagner, 2016. "Exports and Productivity: A Survey of the Evidence from Firm Level Data," World Scientific Book Chapters, in: Microeconometrics of International Trade, chapter 1, pages 3-41, World Scientific Publishing Co. Pte. Ltd..
    4. John R. Baldwin & Wulong Gu, 2004. "Trade Liberalization: Export-market Participation, Productivity Growth, and Innovation," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 20(3), pages 372-392, Autumn.
    5. John Baldwin & Wulong Gu, 2003. "Export-market participation and productivity performance in Canadian manufacturing," Canadian Journal of Economics, Canadian Economics Association, vol. 36(3), pages 634-657, August.
    6. John R. Baldwin & Wulong Gu, 2004. "Trade Liberalization: Export-market Participation, Productivity Growth, and Innovation," Oxford Review of Economic Policy, Oxford University Press, vol. 20(3), pages 372-392, Autumn.
    7. Lucia Foster & John C. Haltiwanger & C. J. Krizan, 2001. "Aggregate Productivity Growth: Lessons from Microeconomic Evidence," NBER Chapters, in: New Developments in Productivity Analysis, pages 303-372, National Bureau of Economic Research, Inc.
    8. John R. Baldwin & Guy Gellatly, 2003. "Innovation Strategies and Performance in Small Firms," Books, Edward Elgar Publishing, number 3062.
    9. Richard E. Caves, 1998. "Industrial Organization and New Findings on the Turnover and Mobility of Firms," Journal of Economic Literature, American Economic Association, vol. 36(4), pages 1947-1982, December.
    10. Verdoorn, P J, 1980. "Verdoorn's Law in Retrospect: A Comment," Economic Journal, Royal Economic Society, vol. 90(358), pages 382-385, June.
    11. David Greenaway & Richard Kneller, 2007. "Firm heterogeneity, exporting and foreign direct investment," Economic Journal, Royal Economic Society, vol. 117(517), pages 134-161, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Maksym Sitnicki, 2018. "Franchising Model Of Commercialization Of Scientific Libraries' Services At Research Universities," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 4(2).
    2. Ryan W. Tang & Ying Zhu & Hongbo Cai & Jinrong Han, 2021. "De-internationalization: A Thematic Review and the Directions Forward," Management International Review, Springer, vol. 61(3), pages 267-312, June.
    3. Maria Luisa Mancusi & Andrea Vezzulli & Serena Frazzoni & Zeno Rotondi & Maurizio Sobrero, 2018. "Export and Innovation in Small and Medium Enterprises: The Role of Concentrated Bank Borrowing," Economica, London School of Economics and Political Science, vol. 85(337), pages 177-204, January.
    4. Christoph March & Ina Schieferdecker, 2021. "Technological Sovereignty as Ability, Not Autarky," CESifo Working Paper Series 9139, CESifo.
    5. Jianmin Tang, 2014. "Are small or large producers driving the Canada‐U.S. labour productivity gap? Recent evidence from manufacturing," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 47(2), pages 517-539, May.
    6. Daniel Schwanen, 2014. "Registering in Harmony: The Case for Pan-Canadian Corporate Registration," e-briefs 171, C.D. Howe Institute.
    7. Piedrahita, N. & Hailu, G., 2018. "Exports and Productivity in Canadian Food Manufacturing," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277322, International Association of Agricultural Economists.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. John Baldwin & Beiling Yan, 2021. "Globalization, Productivity Performance, and the Transformation of the Production Process," Scandinavian Journal of Economics, Wiley Blackwell, vol. 123(4), pages 1088-1115, October.
    2. Fabian Unterlass, 2013. "The relationship between innovation, exports and economic performance. Empirical evidence for 21 EU countries," EcoMod2013 5655, EcoMod.
    3. Marc J. Melitz & Daniel Trefler, 2012. "Gains from Trade When Firms Matter," Journal of Economic Perspectives, American Economic Association, vol. 26(2), pages 91-118, Spring.
    4. Greenaway, David & Kneller, Richard, 2008. "Exporting, productivity and agglomeration," European Economic Review, Elsevier, vol. 52(5), pages 919-939, July.
    5. Tarlok Singh, 2010. "Does International Trade Cause Economic Growth? A Survey," The World Economy, Wiley Blackwell, vol. 33(11), pages 1517-1564, November.
    6. Richard Harris & John Moffat, 2011. "R&D, Innovation and Exporting," SERC Discussion Papers 0073, Centre for Economic Performance, LSE.
    7. Lee, Cassey, 2011. "Trade, productivity, and innovation: Firm-level evidence from Malaysian manufacturing," Journal of Asian Economics, Elsevier, vol. 22(4), pages 284-294, August.
    8. Dalgic, Basak & Fazlioglu, Burcu & Gasiorek, Michael, 2015. "Costs of trade and self-selection into exporting and importing: The case of Turkish manufacturing firms," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 9, pages 1-28.
    9. Richard Harris & Qian Cher Li, 2007. "Learning-by-Exporting? Firm-Level Evidence for UK Manufacturing and Services Sectors," Working Papers 2007_22, Business School - Economics, University of Glasgow.
    10. Schröder, Philipp J.H. & Sørensen, Allan, 2012. "Firm exit, technological progress and trade," European Economic Review, Elsevier, vol. 56(3), pages 579-591.
    11. Victoria Golikova & Ksenia Gonchar & Boris Kuznetsov, 2011. "Entry into Export Markets as an Incentive to Innovate. Evidence from the Russian Manufacturing Industry Survey," HSE Working papers WP BRP 11/EC/2011, National Research University Higher School of Economics.
    12. Yang, Chih-Hai & Chen, Ying-Hui, 2012. "R&D, productivity, and exports: Plant-level evidence from Indonesia," Economic Modelling, Elsevier, vol. 29(2), pages 208-216.
    13. Mirabelle Muûls & Mauro Pisu, 2009. "Imports and Exports at the Level of the Firm: Evidence from Belgium," The World Economy, Wiley Blackwell, vol. 32(5), pages 692-734, May.
    14. Richard Kneller & Mauro Pisu, 2010. "The returns to exporting: evidence from UK firms," Canadian Journal of Economics, Canadian Economics Association, vol. 43(2), pages 494-519, May.
    15. Carlos Carreira, 2013. "Learning, Exporting and Firm Productivity: Evidence from Portuguese Manufacturing and Services Firms," GEMF Working Papers 2013-23, GEMF, Faculty of Economics, University of Coimbra.
    16. Lejour, Arjan & Rojas Romasgosa, Hugo & Rodriguez, Victor & Montalvo, Carvos & Van der Zee, Frans, 2009. "Trade costs, Openness and Productivity: Market Access at Home and Abroad," MPRA Paper 21214, University Library of Munich, Germany.
    17. Piera Bello & Vincenzo Galasso, 2020. "Old before their time: the role of employers in retirement decisions," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 27(5), pages 1198-1223, October.
    18. Başak Dalgıç & Burcu Fazlıoğlu & Deniz Karaoğlan, 2015. "Entry to foreign markets and productivity: Evidence from a matched sample of Turkish manufacturing firms," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 24(5), pages 638-659, August.
    19. Rodil, Óscar & Vence, Xavier & Sánchez, María del Carmen, 2016. "The relationship between innovation and export behaviour: The case of Galician firms," Technological Forecasting and Social Change, Elsevier, vol. 113(PB), pages 248-265.
    20. Fritsch, Michael & Changoluisa, Javier, 2017. "New business formation and the productivity of manufacturing incumbents: Effects and mechanisms," Journal of Business Venturing, Elsevier, vol. 32(3), pages 237-259.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jemstr:v:21:y:2012:i:2:p:469-491. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.kellogg.northwestern.edu/research/journals/JEMS/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.