Year: 2011
Type: book-chapter
Abstract: We build a theoretical model of multi-product firms that highlights how competition across market destinations affects both a firm’s exported product range and product mix. We show how tougher competition in an export market induces a firm to skew its export sales toward its best performing products. We find very strong confirmation of this competitive effect for French exporters across export market destinations. Theoretically, this within-firm change in product mix driven by the trading environment has important repercussions on firm productivity. A calibrated fit to our theoretical model reveals that these productivity effects are potentially quite large. (JEL D21, D24, F13, F14, F41, L11)
Language: English
Topic: Global trade and economics
Domain: Social Sciences
Open Access status: green
Funders: Alfred P. Sloan Foundation, Harvard University, London School of Economics and Political Science, Centre for Economic Policy Research, European Commission, Ministero dell’Istruzione, dell’Università e della Ricerca, Università Bocconi, Institut für Weltwirtschaft, Economic and Social Research Council
OpenAlex ID: W2249253775