The Extensive Margin of Exporting Products: A Firm-Level Analysis

Costas Arkolakis, Sharat Ganapati and Marc-Andreas Muendler

American Economic Journal: Macroeconomics, 2021, vol. 13, issue 4, 182-245

Abstract: To quantify trade frictions, we examine multiproduct exporters. We build a flexible general-equilibrium model and estimate market entry costs using Brazilian firm-product-destination data under rich demand and market access cost shocks. Our estimates show that additional products farther from a firm's core competency come at higher production costs, but there are substantive economies of scope in market access costs. Market access costs differ across destinations, falling more rapidly in scope at nearby regions and at destinations with fewer nontariff barriers. We evaluate a counterfactual scenario that harmonizes market access costs across destinations and find global welfare gains similar to eliminating all current tariffs.

JEL-codes: D22 F12 F13 F14 O14 O19 (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations: View citations in EconPapers (51)

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Related works:
Working Paper: The Extensive Margin of Exporting Products: A Firm-level Analysis (2016)
Working Paper: The Extensive Margin of Exporting Products: A Firm-level Analysis (2010)
Working Paper: The Extensive Margin of Exporting Products: A Firm-level Analysis (2010)
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DOI: 10.1257/mac.20150370

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