Market Size, Competition, and the Product Mix of Exporters

S-Tier
Journal: American Economic Review
Year: 2014
Volume: 104
Issue: 2
Pages: 495-536

Score contribution per author:

2.681 = (α=2.01 / 3 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

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.

Technical Details

RePEc Handle
repec:aea:aecrev:v:104:y:2014:i:2:p:495-536
Journal Field
General
Author Count
3
Added to Database
2026-01-25