The Extensive Margin of Exporting Products: A Firm-level Analysis

Costas Arkolakis, Sharat Ganapati and Marc-Andreas Muendler

No 2028, Cowles Foundation Discussion Papers from Cowles Foundation for Research in Economics, Yale University

Abstract: We examine multi-product exporters and use firm-product-destination data to quantify export entry barriers. Our general-equilibrium model of multi-product firms generalizes earlier models. To match main facts about multi-product exporters, we estimate our model with rich demand and access cost shocks for Brazilian firms. The estimates document that additional products farther from a firm�s core competency incur higher unit costs, but face lower market access costs. We find that these market access costs differ across destinations and evaluate a scenario that standardizes market access between countries. The resulting welfare gains are similar to eliminating all current tariffs.

Keywords: International trade; Heterogeneous firms; Multi-product firms; Firm and product panel data; Brazil (search for similar items in EconPapers)
JEL-codes: F12 F14 L11 (search for similar items in EconPapers)
Pages: 59 pages
Date: 2016-01
New Economics Papers: this item is included in nep-bec and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (38)

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Related works:
Journal Article: The Extensive Margin of Exporting Products: A Firm-Level Analysis (2021)
Working Paper: The Extensive Margin of Exporting Products: A Firm-level Analysis (2010)
Working Paper: The Extensive Margin of Exporting Products: A Firm-level Analysis (2010)
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