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The Product Life Cycle Theory: Empirical Evidence

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  • Alicia Mullor-Sebastián

    (International Monetary Fund)

Abstract

This paper presents 3 empirical tests of the product life cycle theory based on U.S. trade data and on a relatively new data series providing information about a larger number of products and at a lower level of aggregation than the data used previously. The results of the tests strongly support the hypothesis that industrial product groups behave in the manner predicted by the product life cycle theory on world markets. In the case of individual products, however, the results provide less support for the theory. The policy implication is that development strategies should rely on industrial sectors rather than on individual commodities.© 1983 JIBS. Journal of International Business Studies (1983) 14, 95–105

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  • Alicia Mullor-Sebastián, 1983. "The Product Life Cycle Theory: Empirical Evidence," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 14(3), pages 95-105, September.
    • Handle: RePEc:pal:jintbs:v:14:y:1983:i:3:p:95-105
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    Cited by:

    1. David Audretsch & Mark Sanders & Lu Zhang, 2021. "International product life cycles, trade and development stages," The Journal of Technology Transfer, Springer, vol. 46(5), pages 1630-1673, October.
    2. Erica Fuchs & Randolph Kirchain, 2010. "Design for Location? The Impact of Manufacturing Offshore on Technology Competitiveness in the Optoelectronics Industry," Management Science, INFORMS, vol. 56(12), pages 2323-2349, December.
    3. Foellmi, Reto & Hanslin Grossmann, Sandra & Kohler, Andreas, 2018. "A dynamic North-South model of demand-induced product cycles," Journal of International Economics, Elsevier, vol. 110(C), pages 63-86.
    4. Yang, Chia-Hsuan & Nugent, Rebecca & Fuchs, Erica R.H., 2016. "Gains from others’ losses: Technology trajectories and the global division of firms," Research Policy, Elsevier, vol. 45(3), pages 724-745.
    5. Trevino, Len J. & Daniels, John D., 1995. "FDI theory and foreign direct investment in the United States: a comparison of investors and non-investors," International Business Review, Elsevier, vol. 4(2), pages 177-194, June.
    6. Shahedul Alam Khan & Rumana Mubin, 2019. "Trade, Governance And The Mediating Role Of Innovation," Romanian Economic Business Review, Romanian-American University, vol. 14(3), pages 29-43, September.

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