Multi-product firms and exporting: a developing country perspective

Abstract

In this paper we make the distinction between single-product and multi-product firms to contribute to our understanding of the complex relationship between multinational enterprises (MNEs), exporting and economic development. Using firm-level data for Thailand we show that the number of goods produced causes a larger variation in exports volumes than production volumes. Whilst the number of products and the total volume of exports are positively correlated we find, in contrast to US studies, a negative correlation between the number of products produced and the volume of production per product. We then investigate the characteristics associated with multi-product firms and find a distinction between foreignowned and domestic firms. The presence of foreign firms producing single products solely for the domestic market as well as those producing many products for export demonstrates the diversity of behaviour of foreign-owned firms in developing countries. The usual disclaimer applies.2

Exporting and Productivity: The Effects of Multi‐Product and Multi‐Market Export Entry

“…For example, Elliott and Virakul () use data from Thailand to show that multi‐product firms have a higher level of TFP than other firms.…”

David vs. Goliath? Smaller European Exporting firms facing Asian competition on global markets

“…Most recently the product‐level heterogeneity of firm‐level exports is additionally taken into account. Within these models, the value of exports of multi‐product firms is not restricted to the product‐level value or volume of (bilateral) exports – the so‐called intensive margin of trade – but refers also to the number of products firms export, the so‐called export variety or extensive margin of trade (Allanson and Montagna, ; Nocke and Yeaple, ; Bernard et al., ; Agur ; Eckel and Neary, ; Elliott and Virakul, ; Iacovone and Javorcik, ; Eckel et al., ).…”