Cookies?
Library Header Image
LSE Research Online LSE Library Services

Market size, competition, and the product mix of exporters

Mayer, Thierry and Melitz, Marc and Ottaviano, Gianmarco I. P. (2014) Market size, competition, and the product mix of exporters. American Economic Review, 104 (2). pp. 495-536. ISSN 0002-8282

Full text not available from this repository.

Identification Number: 10.1257/aer.104.2.495

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.

Item Type: Article
Official URL: http://www.aeaweb.org/aer/index.php
Additional Information: © 2014 AEA
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HD Industries. Land use. Labor
Sets: Departments > Economics
Research centres and groups > Centre for Economic Performance (CEP)
Date Deposited: 14 Jun 2013 16:06
Last Modified: 26 Jun 2014 13:03
Projects: #225551
Funders: European Commission’s Seventh Research Framework Programme, European Commission, Melitz thanks the Sloan Foundation
URI: http://eprints.lse.ac.uk/id/eprint/47977

Actions (login required)

View Item View Item