Firm Level Adjustment of U.S. Food Firms to Globalization
Spiro Stefanoi (PSU and University of Florida)
Additional Researchers (Affiliation)
Pinar Celikkol Geylani (Duquesne University)
This project analyzes food manufacturing firms’ adjustment to globalizations by investigating the linkages among productivity, exports and imports, and the role of mergers and acquisitions on firms’ decisions to conduct arm’s length transactions as opposed to intra-firm trade. To investigate these relations, the researchers will link firms by utilizing the Longitudinal Firm Trade Transactions database (LFTTD) and using a variety of economics data sets: the Census of Manufactures (CMF), the Annual Survey of Manufactures (ASM), the Longitudinal Business Database (LBD), the Ownership Change Database (OCD), and the Foreign Trade Data – Exports (EXP) and Imports (IMP). This project will shed light on the impact of trade in the following areas of the food manufacturing industry: 1) changes in product mix and product proliferation as well as changes in employment due to import competition and trade reforms; 2) the relationship between mergers and acquisitions and firms’ decisions to engage in arm’s length vs. intra-firm trade; 3) productivity differences between firms engaged in trade relative to those that are not; and, 4) innovation and product differentiation as engines for growth which promote competitiveness (measured as “returns to factors of production”).