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Project Citation: 

Mayer, Thierry, Melitz, Marc J., and Ottaviano, Gianmarco I. P. Replication data for: Market Size, Competition, and the Product Mix of Exporters. Nashville, TN: American Economic Association [publisher], 2014. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-11. https://doi.org/10.3886/E112735V1

Project Description

Summary:  View help for Summary 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.

Scope of Project

JEL Classification:  View help for JEL Classification
      D21 Firm Behavior: Theory
      D24 Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
      F13 Trade Policy; International Trade Organizations
      F14 Empirical Studies of Trade
      F41 Open Economy Macroeconomics
      L11 Production, Pricing, and Market Structure; Size Distribution of Firms


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