Growth of the firm and foreign trade

Vol. 26 No. 2 (2006)

Apr-Jun / 2006
Published April 1, 2006
PDF-Portuguese (Português (Brasil))
PDF-Portuguese (Português (Brasil))

How to Cite

Catermol, Fabricio. 2006. “Growth of the Firm and Foreign Trade: Adrian Wood’s Theory Revisited”. Brazilian Journal of Political Economy 26 (2):239-57.

Growth of the firm and foreign trade

Adrian Wood’s theory revisited

Fabricio Catermol
Do Banco Nacional de Desenvolvimento Econômico e Social (BNDES).
Brazilian Journal of Political Economy, Vol. 26 No. 2 (2006), Apr-Jun / 2006, Pages 239-257


 This paper analyzes the growth of the firm by foreign trade. The theory of Adrian Wood is revisited for the analysis of growth and profit trade-off and improved to cope with growth by exports. The main outcome of this paper is that low domestic demand can be a very important factor to firm choices growth by foreign market. However, the growth of domestic demand does not necessarily reduce exports.

JEL Classification: D21; L11; F12.

Keywords: foreign trade firm strategy barriers to exit Adrian Wood