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

Costas Arkolakis, Sharat Ganapati and Marc-Andreas Muendler

No 16641, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: To quantify trade frictions, we examine multi-product exporters. We build a flexible general equilibrium model and estimate market entry costs using Brazilian firm-product-destination data under rich demand and market-access cost shocks. Our estimates show that additional products farther from a firm’s core competency come at higher production costs, but there are substantive economies of scope in market-access costs. Market-access costs differ across destinations, falling more rapidly in scope at nearby regions and at destinations with fewer non-tariff barriers. We evaluate a counterfactual scenario that harmonizes market-access costs across destinations and find global welfare gains similar to eliminating all current tariffs.

JEL-codes: F12 F14 L11 (search for similar items in EconPapers)
Date: 2010-12
New Economics Papers: this item is included in nep-bec and nep-int
Note: ITI
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Citations: View citations in EconPapers (182)

Published as Costas Arkolakis & Sharat Ganapati & Marc-Andreas Muendler, 2021. "The Extensive Margin of Exporting Products: A Firm-Level Analysis," American Economic Journal: Macroeconomics, American Economic Association, vol. 13(4), pages 182-245, October.

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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 (2016)
Working Paper: The Extensive Margin of Exporting Products: A Firm-level Analysis (2010)
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