Market Size, Competition, and the Product Mix of Exporters

Thierry Mayer, Marc Melitz and Gianmarco Ottaviano

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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 toward 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.

Date: 2014-02
Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-03460548
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Citations: View citations in EconPapers (306)

Published in American Economic Review, 2014, 104 (2), pp.495-536. ⟨10.1257/aer.104.2.495⟩

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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)
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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
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03460548

DOI: 10.1257/aer.104.2.495

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