Market Size, Competition, and the Product Mix of Exporters

Melitz, Marc; Mayer, Thierry; Ottaviano, Gianmarco

Market Size, Competition, and the Product Mix of Exporters

Marc Melitz, Thierry Mayer and Gianmarco Ottaviano

Working Paper from Harvard University OpenScholar

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.

New Economics Papers: this item is included in nep-bec, nep-com, nep-int and nep-tid
References: Add references at CitEc
Citations: View citations in EconPapers (368)

Downloads: (external link)
http://scholar.harvard.edu/melitz/node/64736
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://scholar.harvard.edu/melitz/node/64736 [301 Moved Permanently]--> https://melitz.scholars.harvard.edu//node/64736)

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:qsh:wpaper:64736

Access Statistics for this paper

More papers in Working Paper from Harvard University OpenScholar Contact information at EDIRC.
Bibliographic data for series maintained by Richard Brandon ( this e-mail address is bad, please contact ).