Export dynamics and sales at home

Nicolas Berman (), Antoine Berthou and Jérôme Héricourt

Journal of International Economics, 2015, vol. 96, issue 2, 298-310

Abstract: How do firms' sales interact across markets? Are foreign and domestic sales complements or substitutes? Using a French firm-level database combining balance-sheet and product-destination-specific export information over the period 1995–2001, we study how demand conditions in foreign markets affect domestic sales through variations in exports. We identify a number of exogenous shocks affecting the firms' demand on foreign markets, including product-destination specific imports or tariff changes, and large foreign shocks such as financial crises or civil wars. Our results show that exogenous variations in firm-level exports positively impact domestic sales, even after controlling for domestic demand conditions. A 10% exogenous increase in foreign sales generates a 1 to 3% increase in domestic sales in the short-run. This result is robust to various estimation techniques, instruments, controls, and sub-samples. It is also supported by the natural experiment of the Asian crisis in the late 1990's.

Keywords: Export; Domestic sales; Demand shocks; Markets (search for similar items in EconPapers)
JEL-codes: F10 F44 L20 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (118)

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Related works:
Working Paper: Export dynamics and sales at home (2015)
Working Paper: Export dynamics and sales at home (2015)
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Working Paper: Export dynamics and sales at home (2012)
Working Paper: Export dynamics and sales at home (2012)
Working Paper: Export dynamics and sales at home (2012)
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Working Paper: Export dynamics and sales at home (2011)
Working Paper: Export dynamics and sales at home (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:inecon:v:96:y:2015:i:2:p:298-310

DOI: 10.1016/j.jinteco.2015.04.001

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