Corporate hierarchies and international trade: Theory and evidence
Dalia Marin
(1)
,
Thierry Verdier
(2, 3, 4)
Thierry Verdier
- Fonction : Auteur
- PersonId : 737748
- IdHAL : thierry-verdier
- IdRef : 035502037
Résumé
Corporate organization varies within countries and between countries. We develop a theory which explains the variation in levels of decentralization across firms and links it to the trade environment that firms face. We introduce firms with internal hierarchies in a Melitz and Ottaviano (2008) model of international trade. We show that international trade increases the conflict of interest between CEO/owners and middle managers within firms and these eventually lead to decentralized corporate hierarchies. We test the theory with original data on the internal organizations of 2200 Austrian and German firms and find that the empirical evidence is consistent with the model's predictions.
Domaines
Economies et financesFormat du dépôt | Notice |
---|---|
Type de dépôt | Article dans une revue |
Titre |
en
Corporate hierarchies and international trade: Theory and evidence
|
Résumé |
en
Corporate organization varies within countries and between countries. We develop a theory which explains the variation in levels of decentralization across firms and links it to the trade environment that firms face. We introduce firms with internal hierarchies in a Melitz and Ottaviano (2008) model of international trade. We show that international trade increases the conflict of interest between CEO/owners and middle managers within firms and these eventually lead to decentralized corporate hierarchies. We test the theory with original data on the internal organizations of 2200 Austrian and German firms and find that the empirical evidence is consistent with the model's predictions.
|
Auteur(s) |
Dalia Marin
1
, Thierry Verdier
2, 3, 4
1
LMU -
Ludwig Maximilian University [Munich] = Ludwig Maximilians Universität München
( 460393 )
- Professor-Huber-Platz 2, 80539 München, Allemagne
- Allemagne
2
CEPR -
Center for Economic Policy Research
( 143559 )
- Royaume-Uni
3
PSE -
Paris-Jourdan Sciences Economiques
( 139754 )
- 48 boulevard Jourdan 75014 Paris
- France
4
PSE -
Paris School of Economics
( 301309 )
- 48 boulevard Jourdan 75014 Paris
- France
|
Langue du document |
Anglais
|
Nom de la revue |
|
Vulgarisation |
Non
|
Comité de lecture |
Oui
|
Audience |
Internationale
|
Date de publication |
2014-11
|
Volume |
94
|
Numéro |
2
|
Page/Identifiant |
295–310
|
Domaine(s) |
|
Mots-clés (JEL) |
|
Financement |
|
Mots-clés |
en
Empirical test of the theory of trading firms, Endogenous congruence in the firm, Corporate organization in similar countries, Decentralized management and trade, International trade with endogenous firm organizations
|
DOI | 10.1016/j.jinteco.2014.08.002 |
Loading...