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Capacity Constraints and Export Performance: Theory and Evidence from Belgian Manufacturing

Jacques Bughin

Journal of Industrial Economics, 1996, vol. 44, issue 2, 187-204

Abstract: A mark-up model for export and domestic pricing is developed using the dual approach of cost functions and taking explicitly into account the possibility of (short-run) capacity constraints. The model is applied on a panel of Belgian firms to infer product market power on both domestic and export markets, as well as to estimate the effect of export activity on the firm technology and pricing, through the effect of cost flexibility and capacity utilization. Copyright 1996 by Blackwell Publishing Ltd.

Date: 1996
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Working Paper: Capacity Constraints and Export Performance: Theory and Evidence from Belgian Manufacturing (1994)
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