Multi-Product Exporters: Product Churning, Uncertainty and Export Discoveries

Leonardo Iacovone and Beata Javorcik

Economic Journal, 2010, vol. 120, issue 544, 481-499

Abstract: Recent research on international trade focuses on firm-product-level heterogeneity and the role of uncertainty in shaping international trade. This article contributes to the literature by examining "product-level" dynamics "within firms" in the context of Mexican trade integration under NAFTA. The data show intense product churning within firms and confirm the existence of within-firm product heterogeneity. The data indicate that new exporters enter foreign markets with a small number of varieties, most of which were previously sold at home, and with a small export small volume. The data also suggest that export discoveries are relatively rare and are imitated within a short period of time. Copyright © The Author(s). Journal compilation © Royal Economic Society 2010.

Date: 2010
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