Multiproduct firms, firm dynamics, and the productive mix of Brazilian manufacturing firms

Authors

DOI:

https://doi.org/10.1590/0101-41614831jam

Keywords:

Multiproduct, scope, total factor productivity, heterogeneous firms, extensive margin, intensive margin, export

Abstract

This is a pioneer study on the Brazilian manufacturing sector focused on: i) the role and characteristics of multi-product (MP) plants; and ii) on the determinants and impact of product switching within firms. MP corresponds to 37% of the manufacturing firms, but generates 81% of the output. They employ more workers, are more likely to be exporters, have higher labor productivity and higher TFP. The extensive margin due to adding and retirement of products contributes more to output growth than entry and exit of firms. Among continuing firms, half of the annual output growth (from 2005 to 2009) was originated in firms that switched products. Firms that have net added (dropped) items had higher (smaller) increase in output, in employers, and in the TFP. Higher TFP, more employers, or being exporter increased the probability of only adding or only droping items in the future. 

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Published

30-09-2018

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Articles

How to Cite

Alves, J. D., & Ferreira, M. S. (2018). Multiproduct firms, firm dynamics, and the productive mix of Brazilian manufacturing firms. Estudos Econômicos (São Paulo), 48(3), 349-389. https://doi.org/10.1590/0101-41614831jam