2014/26 | LEM Working Paper Series | ||||||||||||||||
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Fickle product mix: exporters adapting their product vectors across markets |
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Lionel Fontagné, Angelo Secchi and Chiara Tomasi |
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Keywords | |||||||||||||||||
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multi-product, multi-country firms, product vectors, demand and concentration
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JEL Classifications | |||||||||||||||||
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F14, L11, L22
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Abstract | |||||||||||||||||
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This paper analyzes how multi-product firms adjust their exported
product-mix across desti- nations. Using cross sections of Italian and
French data, we show that firms do not follow a rigid ordering in
their product mix exported in different markets but rather they adapt
their choices to better match with country characteristics. By using
metrics based on export shares and on sequences of product names we
provide new insights on the extent a firm’s products portfolio changes
across destinations that go beyond simple rank correlations. Demand
asymmetries, mar- ket structure heterogeneity and differential
abilities to match unit values of products supplied by competitors
emerge as three significant factors in explaining the variety-country
variability observed in firms’ export patterns. Our results resist
when we control for a firm’s choice of not exporting an available
product to a given destination, an explicit choice likely to contain
relevant information.
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