On home market effects and firm heterogeneity

Katharina Erhardt ()

European Economic Review, 2017, vol. 98, issue C, 316-340

Abstract: This paper reassesses the home market effect in the light of firm-level heterogeneity. Industries with high barriers to trade, less differentiated products and high productivity dispersion are more likely to concentrate in larger markets. These results differ partly from the predictions of models without selection into exporting. In the presence of economies of scale firms tend to locate in markets where export selection is less competitive. These predictions are confirmed in an empirical investigation based on 34 OECD countries and 118 sectors.

Keywords: Home market effect; Heterogeneous firms; Monopolistic competition; Economic geography (search for similar items in EconPapers)
JEL-codes: F12 R12 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0014292117301320
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:98:y:2017:i:c:p:316-340

DOI: 10.1016/j.euroecorev.2017.07.007

Access Statistics for this article

European Economic Review is currently edited by T.S. Eicher, A. Imrohoroglu, E. Leeper, J. Oechssler and M. Pesendorfer

More articles in European Economic Review from Elsevier
Bibliographic data for series maintained by Catherine Liu ().