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Foreign market conditions and export performance: does `crowdedness' reduce exports?

Holger Breinlich and Alessandra Tucci

Canadian Journal of Economics, 2011, vol. 44, issue 3, 991-1019

Abstract: This paper analyzes the link between firm exports and the competitive environment in foreign markets. We derive a theory-based econometric specification linking market-specific exports to foreign demand and the degree of a market's `crowdedness,' which depends on the number and efficiency of firms competing there and the barriers impeding their access. Estimates on a large sample of Italian firms indicate that increased crowdedness has reduced Italian exports, but only by 0.2%-0.3% per year. This is substantially less than the contribution of other factors such as higher unit labour costs or weak demand growth in the EU15.

JEL-codes: F12 F15 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (3)

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Working Paper: Foreign Market Conditions and Export Performance: Does 'Crowdedness' Reduce Exports? (2010) Downloads
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