Organizational Hierarchies and Export Destinations

64 Pages Posted: 14 Mar 2023

See all articles by Irene Brambilla

Irene Brambilla

Universidad Nacional de La Plata

Andres Cesar

Universidad Nacional de La Plata (UNLP)

Guillermo Falcone

Universidad Nacional de La Plata (UNLP)

Guido Porto

Universidad Nacional de La Plata (UNLP)

Multiple version iconThere are 2 versions of this paper

Abstract

This paper proposes a new link relating export destinations and the organization of the firm. We claim that the production of higher-quality varieties exported to rich destinations induces firms to restructure their production processes, becoming organizationally more complex. We introduce a theoretical model with these features and we explore the mechanisms using a panel of Chilean manufacturing plants. Our identification strategy relies on falling tariffs on Chilean products across destinations caused by the signature of Free Trade Agreements with high-income countries (the European Union, the United States, and South Korea). We find that Chilean plants that were induced by these tariff reductions to start exporting to high-income destinations increased the number of hierarchical layers and upgraded the quality of their products. This involved the addition of qualified supervisors that facilitated the provision of higher product quality. These effects took place at new high-income exporting firms.

Keywords: Exports, Export destinations, Organizational change, Quality

Suggested Citation

Brambilla, Irene and Cesar, Andres and Falcone, Guillermo and Porto, Guido, Organizational Hierarchies and Export Destinations. Available at SSRN: https://ssrn.com/abstract=4388730 or http://dx.doi.org/10.2139/ssrn.4388730

Irene Brambilla (Contact Author)

Universidad Nacional de La Plata ( email )

La Plata, Buenos Aires 1900
Argentina

Andres Cesar

Universidad Nacional de La Plata (UNLP) ( email )

La Plata
Argentina

Guillermo Falcone

Universidad Nacional de La Plata (UNLP) ( email )

La Plata
Argentina

Guido Porto

Universidad Nacional de La Plata (UNLP) ( email )

La Plata
Argentina

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
22
Abstract Views
203
PlumX Metrics