Co-Exportation of Products by Multi-Product Firms

Peter Egger and Corinne Jones

No 18683, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: The attention on multi-product firms to date has mainly focused on firm scope, rather than what firms produce. We study what firms produce by developing a heterogeneous firm model accounting for correlations in production efficiencies across products and correlations in consumers' tastes across products and destinations. Our estimation strategy centers on a novel extension of generalized score matching. We fit the model to Chinese exports data, focusing on firms exporting products with ISIC codes C19 (leather, leather products, and footwear) and C18 (wearing apparel, dressing and dyeing of fur). We document clustered co-production structures consistent with correlated efficiencies across products.

JEL-codes: C34 C38 F12 F14 L11 L25 (search for similar items in EconPapers)
Date: 2023-12
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