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The extensive margin of exporting products : a firm-level analysis

Author: Costas Arkolakis; Marc-Andreas Muendler; National Bureau of Economic Research.
Publisher: Cambridge, Mass. : National Bureau of Economic Research, ©2010.
Series: Working paper series (National Bureau of Economic Research), no. 16641.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Summary:
We use a panel of Brazilian exporters, their products, and destination markets to document a set of regularities for multi-product exporters: (i) few top-selling products account for the bulk of a firm's exports in a market, (ii) the distribution of exporter scope (the number of products per firm in a market) is similar across markets, and (iii) within each market, exporter scope is positively associated with  Read more...
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Additional Physical Format: Print version:
Arkolakis, Costas.
Extensive margin of exporting products.
Cambridge, Mass. : National Bureau of Economic Research, ©2010
(DLC) 2011655874
Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Costas Arkolakis; Marc-Andreas Muendler; National Bureau of Economic Research.
OCLC Number: 694732449
Description: 1 online resource (50, 194 pages) : illustrations.
Series Title: Working paper series (National Bureau of Economic Research), no. 16641.
Other Titles: Online data appendix to: The extensive margin of exporting products : a firm-level analysis
Responsibility: Costas Arkolakis, Marc-Andreas Muendler.

Abstract:

We use a panel of Brazilian exporters, their products, and destination markets to document a set of regularities for multi-product exporters: (i) few top-selling products account for the bulk of a firm's exports in a market, (ii) the distribution of exporter scope (the number of products per firm in a market) is similar across markets, and (iii) within each market, exporter scope is positively associated with average sales per product. Our data also show that firms systematically export their highest-sales products across multiple destinations. To account for these regularities, we develop a model of firm-product heterogeneity with entry costs that depend on exporter scope. Estimating this model for the within-firm sales distribution we identify the nature and components of product entry costs. We find that firms face a strong decline in product sales with scope but also that market-specific entry costs drop fast. Counterfactual experiments with globally falling entry costs indicate that a large share of the simulated increase in trade is attributable to declines in the firm's entry cost for the first product.

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