Multinational Retailers and Home Country Exports

Angela Cheptea, Charlotte Emlinger and Karine Latouche

No 13-03, Working Papers SMART from INRAE UMR SMART

Abstract: This paper questions whether the overseas expansion of a country’s retailers fosters overall bilateral exports towards these host markets. To address this question, we consider an empirical trade model, where the foreign sales of multinational retailers reduce the fixed and variable trade costs of their co-national firms towards the same destination markets. We test our model with data on bilateral exports on a large panel of countries and the foreign sales of world’s largest one hundred retailers over the 2001-2010 decade. We find a strong positive effect of the overseas presence of a country’s retailers on its exports to those markets. This outcome is far from being trivial, as most products sold in retailers foreign outlets are locallyproduced. It testifies that the overseas presence of a country’s retail companies contributes to the reduction of trade costs towards these markets for other origin country firms. Our result is robust to different specifications, the use of different sets of instrumental variables and econometric approaches.

Keywords: international trade; multinational retailers (search for similar items in EconPapers)
JEL-codes: F10 F12 F14 F23 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2013
New Economics Papers: this item is included in nep-int
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http://ageconsearch.umn.edu/bitstream/207982/2/WP%20SMART-LERECO%2013-03.pdf (application/pdf)

Related works:
Working Paper: Multinational retailers and home country exports (2020)
Working Paper: Multinational Retailers and Home Country Exports (2013)
Working Paper: Multinational Retailers and Home Country Exports (2012)
Working Paper: Multinational Retailers and Home Country Exports (2012)
Working Paper: Multinational Retailers and Home Country Exports (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:rae:wpaper:201303

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