(Monday, 19th May 2014)
Title : The Impact of Globalization on the Organization of Firms
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Since the 1980s we have witnessed a systematic fall in transportation, trade and information costs, which has had a significant impact on the degree of competition that firms face in product markets. How have firms adapted to those changes? This session will review the evidence on the effect of increases in competition, mainly resulting from “globalization” on the firms’ organizational choices including their choice of wages, incentives, the design of corporate hierarchies and management practices. We will also emphasize identification issues in obtaining credible results.
Bibliographical references :
Must read reference : Guadalupe and Wulf (2010) "The Flattening Firm and Product Market Competition: The Effect of Trade Liberalization on Corporate Hierarchies", American Economic Journal –Applied Economics, Vol. No. 4, pp. 105–27
Cuñat and Guadalupe (2009) "Globalization and the Provision of Incentives inside the Firm", Journal of Labor Economics, Vol. 27, No. 2, pp. 179-212