This paper investigates the effect of domestic market size on innovation activities across different durable good industries in the Chinese manufacturing sector. We address the endogeneity of market size by an IV strategy, based on a measure of potential market size, which is driven only by...

This paper presents an industry equilibrium model of vertical integration under contractualimperfections with speci…c input suppliers and external investors. I assume that vertical inte-gration economizes on the needs for contracts with speci…c input suppliers at the cost of higher…xed costs....

The increasing role of services in GDP results from the growing share of service industries, but also from the fact that firms produce services along with goods. This paper investigates the determinants of service provision by manufacturing firms. First, it develops a model of differentiated...

Empirical research has shown tremendous productivity differences, even within narrowly defined industries. A great host of studies is explainsing this productivity disparity by factors such as idiosyncratic technology shocks, input price differences, management skills, or international trade....

Bank loans through bank-firm relationship is expected to enhance the performance of firms owing to the possession of private information on the firms that is not readily available to other outside investors. This special relationship is deemed to be very important than equity financing in...

The private brands (PB) of corporate retailers are booming in Korea. This paper examines the effect of the rise of PB on Korean retail and manufacturing. By utilizing both store-level data and firm-level data, I find that the expansion of PB elevates the profits of corporate retailers but does...

This paper analyses the impact of financial frictions on markup adjustments at the firm level. We use a rich panel data set that matches information on banking relationships with firm-level data. By relying on insights from recent contributions in the literature, we obtain exogenous credit...

In the last few years, we have seen the emergence of two new ways in which firms interact with outside stakeholders, namely crowdsourcing and crowdfunding service providers. In this article we define crowdsourcing and crowdfunding terms, compare new business models with the traditional ones,...

This paper studies how expected returns interact with product market competition. We present a model in which product market competition is jointly captured by the industry concentration and the average markup. We then provide empirical evidence consistent with three channels that explain the...