Low-Cost Import Competition: Do Small Firms Respond Differently?

10 Pages Posted: 14 Apr 2010

See all articles by Italo Colantone

Italo Colantone

Bocconi University

Kristien Coucke

Vlerick Business School - Entrepreneurship, Governance and Strategy

Leo Evariste Sleuwaegen

Vlerick Leuven Gent Management School

Multiple version iconThere are 2 versions of this paper

Date Written: April 1, 2010

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.

Keywords: globalization, low-cost import competition, firm exit

JEL Classification: F14, L25, L6

Suggested Citation

Colantone, Italo and Coucke, Kristien and Sleuwaegen, Leo Evariste, Low-Cost Import Competition: Do Small Firms Respond Differently? (April 1, 2010). Available at SSRN: https://ssrn.com/abstract=1588662 or http://dx.doi.org/10.2139/ssrn.1588662

Italo Colantone (Contact Author)

Bocconi University ( email )

Via Sarfatti, 25
Milan, MI 20136
Italy

Kristien Coucke

Vlerick Business School - Entrepreneurship, Governance and Strategy ( email )

Vlamingenstraat 83
Leuven, B-3000
Belgium
+32 16 323635 (Phone)

HOME PAGE: http://www.vlerick.be/research/db/search.cfm?menu1=764

Leo Evariste Sleuwaegen

Vlerick Leuven Gent Management School ( email )

Library
REEP 1
Gent, BE-9000
Belgium
003292109727 (Phone)
003292109747 (Fax)

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