I find that firms with more than 50 percent of foreign ownership introduce on average more than twice as many more new varieties of goods as private domestic firms. Advantages in productivity account for 32 to 62 percent of the difference in the number and sales of new varieties, while...

Multiproduct firms and product turnover are widespread phenomena. This paper develops a theoretical framework that links advantages in Ramp;D and variable costs with firm's ability to expand its portfolio of products. The framework is then applied to explain systematic differences in product...

Traditional measures of trade diversification only take into account contemporaneous export baskets. These measures fail to capture a country?s ability to respond to shocks by allocating factors of production into activities for which it has already paid the fixed costs associated with...

The literature on the relationship between economic diversification and development established that diversification rises with development up to a point. Some have argued that market failures reduce private investments that are necessary to find out whether a new product can be exported...

This paper examines the economic implications of a novel concept of trade diversification-latent diversification. In contrast to traditional measures, latent diversification accounts for potential movements of factors of production into activities where the country has previous exporting...