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Multiproduct firms, firm dynamics, and the productive mix of Brazilian manufacturing firms

Author

Listed:
  • Juliana Dias Alves

    (Cedeplar-UFMG)

  • Mauro Sayar Ferreira

    (Cedeplar-UFMG)

Abstract

This is a pioneer study on the Brazilian manufacturing sector focused on: i) the role and characteristics of multi-product (MP) plants; and ii) on the determinants and impact of product switching within firms. MP corresponds to 37% of the manufacturing firms, but generates 81% of the output. They employ more workers, are more likely to be exporters, have higher labor productivity and higher TFP. The extensive margin due to adding and retirement of products contributes more to output growth than entry and exit of firms. Among continuing firms, half of the annual output growth (from 2005 to 2009) was originated in firms that switched products. Firms that have net added (dropped) items had higher (smaller) increase in output, in employers, and in the TFP. Higher TFP, more employers, or being exporter increased the probability to only add or only drop items in the future.

Suggested Citation

  • Juliana Dias Alves & Mauro Sayar Ferreira, 2016. "Multiproduct firms, firm dynamics, and the productive mix of Brazilian manufacturing firms," Textos para Discussão Cedeplar-UFMG 538, Cedeplar, Universidade Federal de Minas Gerais.
    • Handle: RePEc:cdp:texdis:td538
    as

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    File URL: https://www.cedeplar.ufmg.br/pesquisas/td/TD%20538.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Multiproduct; scope; total factor productivity; heterogeneous firms;
    All these keywords.

    JEL classification:

    • D2 - Microeconomics - - Production and Organizations
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • L6 - Industrial Organization - - Industry Studies: Manufacturing

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