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Content archived on 2024-06-18

The contribution of multinational retailers from developed countries operating in developing economies to the export performance of local firms

Objective

"The current project seeks to answer how the overseas expansion of multinational retailers impacts the capacity of local (host country) firms to export. It focuses on multinational retailers from developed countries that establish operations in developing economies. In terms of theoretical modeling, it intends to add a retail sector in trade models with heterogeneous firms, and to unravel the link between the evolutions in the retail sector and the distribution of firms' productivity in the host country. For the empirical part, the integration of several host countries in the analysis and the use of firm-level data is intended in order to accurately measure the capability effect (the increase in exports due to productivity improvements of local firms), the linkage effect (the increase in exports due to the access of local firms to retailers’ foreign networks of outlets and contacts), as well as reveal new underlying mechanisms at work. Another objective of the project is to disentangle between effects on exports towards traditional and new foreign markets, and to evaluate the impacts in terms of the variety of goods produced and exported by host country firms. Finally, the project aims to understand how multinational retail chains adjust their supply policies to production shocks faced by their suppliers, and how these decisions explain retailers' trade-offs between low-cost suppliers from developing countries, and more reactive, more flexible suppliers from home and other developed economies. This is an innovative approach, because the existing literature focuses exclusively on firms’ responses to changes, shocks in the demand, emphasizing their focus on policies ensuring just-in-time delivery."

Fields of science (EuroSciVoc)

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Topic(s)

Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.

Call for proposal

Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.

FP7-PEOPLE-2012-IEF
See other projects for this call

Funding Scheme

Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.

MC-IEF - Intra-European Fellowships (IEF)

Coordinator

INSTITUT FUER ANGEWANDTE WIRTSCHAFTSFORSCHUNG EV
EU contribution
€ 134 002,80
Total cost

The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.

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