Agenda > Tous les événements
Séminaire d’économie de Bordeaux
Mardi 8 décembre à 12h sur Zoom :
Pr. Chirantan Chatterjee
(Indian Institute of Management)
« Pandemic, Subnational Heterogeneity, and MNE Market Share:Evidence from an Emerging Economy »
Abstract
Why do some firms gain while others lose market share in the wake of a traumatic exogenous shock? How does subnational heterogeneity influence this dynamic? We propose that the differential opportunity cost of firms is an important mechanism that provides an answer to these questions. This study investigates whether and how subnational heterogeneity may affect the relative performance of incumbent multinational enterprises (MNEs) and rival domestic firms in the wake of a traumatic exogenous shock. Leveraging the 2009-10 H1N1 influenza pandemic as a source of exogenous variation in global demand for influenza vaccines, we empirically investigate how subnational heterogeneity in economic resources, industry infrastructure, and political alignment may affect the performance of incumbent MNEs and rival domestic firms following the pandemic. We find that subnational heterogeneity in economic resources, industry infrastructure, and political alignment significantly influences the market share dynamics of MNEs and domestic firms following the pandemic. Additional analyses suggest that these dynamics are caused not via a reduction in the revenues of MNEs but via a significantly greater increase in the revenues of domestic firms. Our findings highlight the role of diversified domestic firms’ market entry as an underlying driver of competitive dynamics induced by the pandemic. Taken together, the results of this study provide useful insights on the interplay between subnational heterogeneity and firm behavior in the wake of a global pandemic, and have important implications for a contemporary problem at the business-societal interface.
>> en visio sur ZOOM : Si vous n’avez pas reçu le lien et les identifiants de la réunion (dans la newsletter), écrivez à communication.gretha@u-bordeaux.fr