Multiple-Product Firms and Product Switching

Bernard, Andrew B.; Redding, Stephen J.; Schott, Peter K.

doi:10.1257/aer.100.1.70

Cited by 674 publications

(496 citation statements)

References 39 publications

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“…It is well known that a substantial fraction of firms produce and export multiple products, and that multi-product firms make up for the majority of sales in a given industry, see Arkolakis and Muendler (2010) and Bernard et al (2010). In our sample, 56 percent of firms export in more than one HS-6 product category.…”

Section: Multi-product Firmsmentioning

confidence: 98%

Spatial exporters

Defever

Heid

Larch

2015

Journal of International Economics

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In this paper, we provide causal evidence that firms serve new markets which are geographically close to their prior export destinations with a higher probability than standard gravity models predict. We quantify the impact of this spatial pattern using a data set of Chinese firms which had never exported to the EU, the United States, and Canada before 2005. These countries imposed import quotas on textile and apparel products until 2005 and experienced a subsequent increase in imports of previously constrained Chinese firms. Controlling for firmdestination specific effects and accounting for potential true state dependence we show that the probability to export to a country increases by about two percentage points for each prior export destination which shares a common border with this country. We find little evidence for other forms of proximity to previous export destinations like common colonizer, language or income group.

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Section: Multi-product Firmsmentioning

confidence: 98%

Spatial exporters

Defever

Heid

Larch

2015

Journal of International Economics

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“…The reality, however, is that firms are multi-product and export multiple products to multiple destinations (Bernard et al 2010). This implies that firms look at the decision to produce and export a new product in conjunction with the optimal production and export mix.…”

Section: Multiproduct Decisions and Product Concentrationmentioning

confidence: 99%

Firm Behaviour and the Introduction of New exports: Evidence from Brazil

2012

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SummaryThis paper contributes to understanding the process of export diversification by analysing firm level determinants in Brazil during the period 2000-2009. The first objective of the paper is to establish the set of firm characteristics and processes that are more conductive to new exports; the second, to identify different pathways to diversification regarding relatedness and sophistication and, which firm level behaviours can be associated to the different paths. We answer these questions using a unique dataset that links data on exports, innovation and firms characteristics at the firm level. The paper contributes to the literature on export diversification and on preparation for exporting by identifying firm level behaviours that contribute to the process of diversification. In particular, the findings suggest that firms prepare for diversification by first gaining power in the domestic market and more importantly that they do so by adopting specific innovation and learning efforts.

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“…Specifically, letk f kt andm f kt represent the (observed) measures of capital and materials, respectively, where each measure has been deflated by a sector-specific input price index. 35 (14) where w m f kt captures the deviation of the unobserved log firm-product-specific input price from the log industry-wide materials price index. We similarly assume that an analogous relationship holds for capital k f kt =k f kt −w k f kt .…”

Section: C1 Estimating Productivitymentioning

confidence: 99%

Product churning, reallocation, and Chinese export growth

Rodrigue

Tan

et al. 2017

Journal of Economic Behavior & Organization

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This paper quantifies the separate contribution of idiosyncratic productivity and demand growth on aggregate Chinese exports. We develop firm, product, market and year-specific measures of productivity and demand. We use these measures to document a number of novel findings that distinguish the growth of Chinese exports. First, we document that changes in demand explain nearly 82 percent of aggregate export growth, while only 18 percent of export growth is determined by productivity growth. Second, our results highlight two mechanisms which contribute significantly to aggregate export growth: the rapid reallocation of market shares towards products with growing demand, and high rates of product exit among low demand products. Investigating the mechanisms underlying these results we find that new exporters suffer demand shocks which are 66 percent smaller than those observed for incumbent producers in the same product market. By comparison, we find that there is only an 8 percent difference on average between the productivity of new and incumbent exporters. Repeating our exercise with revenue productivity reveals much smaller differences. This is largely attributed to differential movements in prices and marginal costs.

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Multiple-Product Firms and Product Switching

Cited by 674 publications

References 39 publications

Spatial exporters

Spatial exporters

Firm Behaviour and the Introduction of New exports: Evidence from Brazil

Product churning, reallocation, and Chinese export growth

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