High-end variety exporters defying gravity: Micro facts and aggregate implications

Julien Martin and Florian Mayneris

Journal of International Economics, 2015, vol. 96, issue 1, 55-71

Abstract: We develop a new methodology to identify high-end variety exporters in French firm-level data. We find that they do not export to more countries, but they export to more distant destinations than low-end ones. We also show that in contrast to low-end exporters, distance has almost no effect on high-end variety export(er)s. Because of this lower sensitivity to distance at the micro-level, specializing in the production of high-end varieties has implications for the geography of aggregate exports. Specializing in high-end varieties allows for a greater geographic diversification of aggregate exports – in particular when demand arises from both neighboring and distant countries. It also makes a country better able to benefit from growth in remote destinations.

Keywords: Vertical differentiation; Gravity; Distance; Volatility (search for similar items in EconPapers)
JEL-codes: F14 F43 L15 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (29)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:inecon:v:96:y:2015:i:1:p:55-71

DOI: 10.1016/j.jinteco.2015.01.008

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