02013cas a2200265 a 4500 AALejournalIMF005408 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451871043 1018-5941 BD-DhAAL BD-DhAAL Moreno Badia, Marialuz. Globalization Drives Strategic Product Switching / Marialuz Moreno Badia, Veerle Slootmaekers, Ilke Van Beveren. Washington, D.C. : International Monetary Fund, 2008. 1 online resource (44 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Using firm-level data for Estonia for the years 1997-2005, we analyze the impact of international competition on firm dynamics, considering both firm closedown and product switching. We contribute to the literature in two important ways: (1) this is the first paper to study the determinants of exit and product switching in an emerging market; and (2) we consider explicitly the role of export opportunities. Our results indicate that globalization does not affect firm exit significantly but it is an important factor explaining product switching. Previous studies on industrial countries have shown that product switching has been a defensive strategy against low-cost imports. In contrast, our results suggest that Estonian firms have switched products as an offensive strategy to take advantage of the export opportunities created by trade liberalization. Mode of access: Internet Beveren, Ilke Van. Slootmaekers, Veerle. IMF Working Papers; Working Paper ; No. 2008/246 Full text available on IMF http://elibrary.imf.org/view/journals/001/2008/246/001.2008.issue-246-en.xml IMF e-Library