Market size, competition, and the product mix of exporters

Thierry Mayer, Marc Melitz and Gianmarco Ottaviano

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: We build a theoretical model of multi-product firms that highlights how competition across market destinations affects both a firm's exported product range and product mix. We show how tougher competition in an export market induces a firm to skew its export sales towards its best performing products. We find very strong confirmation of this competitive effect for French exporters across export market destinations. Theoretically, this within firm change in product mix driven by the trading environment has important repercussions on firm productivity. A calibrated fit to our theoretical model reveals that these productivity effects are potentially quite large.

Keywords: trading partners; multiproduct firms; trade models (search for similar items in EconPapers)
JEL-codes: F0 (search for similar items in EconPapers)
Pages: 51 pages
Date: 2012-05
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
http://eprints.lse.ac.uk/54286/ Open access version. (application/pdf)

Related works:
Chapter: Market Size, Competition, and the Product Mix of Exporters (2021)
Journal Article: Market Size, Competition, and the Product Mix of Exporters (2014)
Working Paper: Market Size, Competition, and the Product Mix of Exporters (2014)
Working Paper: Market Size, Competition, and the Product Mix of Exporters (2014)
Working Paper: Market Size, Competition, and the Product Mix of Exporters (2014)
Working Paper: Market Size, Competition, and the Product Mix of Exporters (2012)
Working Paper: Market Size, Competition, and the Product Mix of Exporters (2011)
Working Paper: Market Size, Competition, and the Product Mix of Exporters (2011)
Working Paper: Market Size, Competition, and the Product Mix of Exporters (2011)
Working Paper: Market size, competition, and the product mix of exporters (2011)
Working Paper: Market size, competition, and the product mix of exporters (2011)
Working Paper: Market Size, Competition, and the Product Mix of Exporters (2011)
Working Paper: Market size, competition and the product mix of exporters (2010)
Working Paper: Market Size, Competition, and the Product Mix of Exporters
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:ehl:lserod:54286

Access Statistics for this paper

More papers in LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library LSE Library Portugal Street London, WC2A 2HD, U.K.. Contact information at EDIRC.
Bibliographic data for series maintained by LSERO Manager ().