Foreign market conditions and export performance: does ‘crowdedness’ reduce exports?

Holger Breinlich and Alessandra Tucci

Canadian Journal of Economics/Revue canadienne d'économique, 2011, vol. 44, issue 3, 991-1019

Abstract: 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. Ce texte analyse le lien entre les exportations d’une firme et l’environnement concurrentiel dans les marchés étrangers. On dérive une spécification économétrique théoriquement fondée qui lie les exportations spécifiques à un marchéà la demande étrangère et au degré d’encombrement de ce marché (lequel dépend du nombre et de l’efficacité des firmes qui se concurrencent sur ce marché, et des barrières qui en bloquent l’accès). Des estimations à partir d’un grand échantillon de firmes italiennes montrent qu’un encombrement accru a réduit les exportations italiennes de seulement 0.2%à 0.3% par année. Voilà qui est substantiellement moindre que l’effet d’autres facteurs comme les coûts unitaires de travail plus élevés ou la faible croissance de la demande dans le marché principal que constitue la communauté européenne des 15.

Date: 2011
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https://doi.org/10.1111/j.1540-5982.2011.01663.x

Related works:
Journal Article: Foreign market conditions and export performance: does `crowdedness' reduce exports? (2011)
Working Paper: Foreign Market Conditions and Export Performance: Does 'Crowdedness' Reduce Exports? (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:wly:canjec:v:44:y:2011:i:3:p:991-1019

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