Market Size, Competition, and the Product Mix of Exporters

Thierry Mayer, Marc Melitz and Gianmarco Ottaviano

American Economic Review, 2014, vol. 104, issue 2, 495-536

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-codes: D21 D24 F13 F14 F41 L11 (search for similar items in EconPapers)
Date: 2014
Note: DOI: 10.1257/aer.104.2.495
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Citations: View citations in EconPapers (379)

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Related works:
Chapter: Market Size, Competition, and the Product Mix of Exporters (2021)
Working Paper: Market Size, Competition, and the Product Mix of Exporters (2014)
Working Paper: Market Size, Competition, and the Product Mix of Exporters (2014)
Working Paper: Market Size, Competition, and the Product Mix of Exporters (2014)
Working Paper: Market Size, Competition, and the Product Mix of Exporters (2012)
Working Paper: Market size, competition, and the product mix of exporters (2012)
Working Paper: Market Size, Competition, and the Product Mix of Exporters (2011)
Working Paper: Market Size, Competition, and the Product Mix of Exporters (2011)
Working Paper: Market Size, Competition, and the Product Mix of Exporters (2011)
Working Paper: Market size, competition, and the product mix of exporters (2011)
Working Paper: Market size, competition, and the product mix of exporters (2011)
Working Paper: Market Size, Competition, and the Product Mix of Exporters (2011)
Working Paper: Market size, competition and the product mix of exporters (2010)
Working Paper: Market Size, Competition, and the Product Mix of Exporters
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