Multi-Product Exporters and the Margins of Trade PDF Download
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Author: Andrew B. Bernard
Publisher:
ISBN:
Category :
Languages : en
Pages : 23
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Book Description
This paper examine multi-product exporters in Belgium, considering their importance and the relationship between the margins of trade and firm productivity. We employ proxies for trade costs to quantify the extensive and intensive margin adjustments of trade. Relatively few exporting firms account for the majority of Belgian exports and these large firms have greater productivity and value-added, more employees and exported products. Across firms, productivity is positively associated with firm exports. More productive firms export more products to more countries and have higher average product-country export flows. The extensive and intensive margins are equally important in total firm exports.
Author: Andrew B. Bernard
Publisher:
ISBN:
Category :
Languages : en
Pages : 23
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Book Description
This paper examine multi-product exporters in Belgium, considering their importance and the relationship between the margins of trade and firm productivity. We employ proxies for trade costs to quantify the extensive and intensive margin adjustments of trade. Relatively few exporting firms account for the majority of Belgian exports and these large firms have greater productivity and value-added, more employees and exported products. Across firms, productivity is positively associated with firm exports. More productive firms export more products to more countries and have higher average product-country export flows. The extensive and intensive margins are equally important in total firm exports.
Author: Leonardo Iacovone
Publisher:
ISBN:
Category : Electronic book
Languages : en
Pages :
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Author: Van Pham
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Author: Catherine Fuss
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ISBN:
Category :
Languages : en
Pages :
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After establishing that exporters obtain higher margins than non-exporters, the paper takes a new look at export premia by comparing multi-product exporters' costs, prices and markups on the domestic and foreign markets. This firm-product-market analysis is made possible thanks to a unique dataset for Belgian manufacturing firms over 1996-2016. Firm-product estimates of marginal costs are obtained following De Loecker et al. (2016) methodology, based on firm-product production data. Combined with firm-product international transaction data, firm-product unit values can be computed separately for the domestic market and foreign markets. Markups can then be recovered at the firmproduct- market level from observed unit values and estimated marginal costs. The empirical results suggest that firms select their best products, the ones with lower marginal cost, for foreign markets. They partly translate this cost advantage into lower prices, but essentially extract higher margins from these.
Author: Leo Iacovone
Publisher:
ISBN:
Category :
Languages : en
Pages : 37
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Recent developments in trade theory, especially research on multi-product firms, have not been matched by similar progress on the empirical front. This paper aims to fill this gap by presenting a novel set of stylized facts on firm-product dynamics observed during an export boom. This exercise is possible thanks to a unique firm-product level dataset covering about 85 percent of Mexican industrial output for the period 1994-2003. The main findings are as follows. First, there is a substantial degree of product turnover at the firm-product level in response to declining trade costs. Second,quot;core competenciesquot; - the fact that firms have a cost advantage or greater expertise at manufacturing some of their products - are the main driver of firms' decision to introduce or drop export products. Third, new exporters tend to quot;start smallquot; in terms of both values and number of exported products. Fourth, even if the expansion in the number of exported products played a role in stimulating Mexican exports, the growth in volume of pre-existing products was the main driver of the export boom. Finally, the introduction of new export products is preceded by a surge in investment. These findings are in line with many, but not all, predictions of recent theoretical work.
Author:
Publisher:
ISBN:
Category : Exports
Languages : en
Pages :
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Book Description
"Recent developments in trade theory, especially research on multi-product firms, have not been matched by similar progress on the empirical front. This paper aims to fill this gap by presenting a novel set of stylized facts on firm-product dynamics observed during an export boom. This exercise is possible thanks to a unique firm-product level dataset covering about 85 percent of Mexican industrial output for the period 1994-2003. The main findings are as follows. First, there is a substantial degree of product turnover at the firm-product level in response to declining trade costs. Second, "core competencies"--The fact that firms have a cost advantage or greater expertise at manufacturing some of their products - are the main driver of firms' decision to introduce or drop export products. Third, new exporters tend to "start small" in terms of both values and number of exported products. Fourth, even if the expansion in the number of exported products played a role in stimulating Mexican exports, the growth in volume of pre-existing products was the main driver of the export boom. Finally, the introduction of new export products is preceded by a surge in investment. These findings are in line with many, but not all, predictions of recent theoretical work."--World Bank web site.
Author: Leonardo Iacovone
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
Recent developments in trade theory, especially research on multi-product firms, have not been matched by similar progress on the empirical front. This paper aims to fill this gap by presenting a novel set of stylized facts on firm-product dynamics observed during an export boom. This exercise is possible thanks to a unique firm-product level dataset covering about 85 percent of Mexican industrial output for the period 1994-2003. The main findings are as follows. First, there is a substantial degree of product turnover at the firm-product level in response to declining trade costs. Second, "core competencies" - the fact that firms have a cost advantage or greater expertise at manufacturing some of their products - are the main driver of firms' decision to introduce or drop export products. Third, new exporters tend to "start small" in terms of both values and number of exported products. Fourth, even if the expansion in the number of exported products played a role in stimulating Mexican exports, the growth in volume of pre-existing products was the main driver of the export boom. Finally, the introduction of new export products is preceded by a surge in investment. These findings are in line with many, but not all, predictions of recent theoretical work.
Author: Andrew B. Bernard
Publisher:
ISBN:
Category : Free trade
Languages : en
Pages : 66
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Book Description
This paper develops a general equilibrium model of multi-product firms and analyzes their behavior during trade liberalization. Firm productivity in a given product is modeled as a combination of firm-level "ability" and firm-product-level "expertise", both of which are stochastic and unknown prior to the firm's payment of a sunk cost of entry. Higher firm-level ability raises a firm's productivity across all products, which induces a positive correlation between a firm's intensive (output per product) and extensive (number of products) margins. Trade liberalization fosters productivity growth within and across firms and in aggregate by inducing firms to shed marginally productive products and forcing the lowest-productivity firms to exit. Though exporters produce a smaller range of products after liberalization, they increase the share of products sold abroad as well as exports per product. All of these adjustments are shown to be relatively more pronounced in countries' comparative advantage industries.
Author: Costas Arkolakis
Publisher:
ISBN:
Category :
Languages : en
Pages : 60
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Book Description
We examine multi-product exporters and use firm-product-destination data to quantify export entry barriers. Our general-equilibrium model of multi-product firms generalizes earlier models. To match main facts about multi-product exporters, we estimate our model with rich demand and access cost shocks for Brazilian firms. The estimates document that additional products farther from a firm's core competency incur higher unit costs, but face lower market access costs. We find that these market access costs differ across destinations and evaluate a scenario that standardizes market access between countries. The resulting welfare gains are similar to eliminating all current tariffs.
Author: Carsten Eckel
Publisher:
ISBN:
Category : Exports
Languages : en
Pages : 26
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Book Description
We review the implications of the "core competence" model of multi-product firms, including the "market-size paradox": for most countries, the world market is much larger than the home market, while the costs of accessing foreign markets are relatively low; hence the model predicts that most domestic firms should export more of their core products than they sell domestically; yet, in practice, we do not observe this. Extending the model to allow for investment in export market penetration resolves the puzzle, and Mexican data confirm its predictions: in particular, only the largest firms exhibit the dominance of exports over home sales.
