Multi-Product Exporters : Diversification and Micro-Level Dynamics
Recent developments in trade theory, especially research on multi-product firms, have not been matched by similar progress on the empirical front. This paper aims to fill this gap by presenting a novel set of stylized facts on firm-product dynamics...
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| Format: | Policy Research Working Paper |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2008/09/9876468/multi-product-exporters-diversification-micro-level-dynamics http://hdl.handle.net/10986/6965 |
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okr-10986-69652021-04-23T14:02:32Z Multi-Product Exporters : Diversification and Micro-Level Dynamics Iacovone, Leonardo Javorcik, Beata S. ACCESS TO FOREIGN MARKETS ADVERTISING AGGREGATE TRADE ALCOHOLIC BEVERAGES BILATERAL TRADE CHANGES IN TRADE COMPANY COMPARATIVE ADVANTAGE COMPETITORS CONSUMERS CURRENCY DEFLATORS DEVALUATION DEVELOPMENT ECONOMICS DIVERSIFICATION DOMESTIC MARKET ECONOMIC PERFORMANCE ECONOMIC POLICY ECONOMIC RESEARCH EXPANSION EXPORT EXPORT COSTS EXPORT DIVERSIFICATION EXPORT GROWTH EXPORT MARKET EXPORT MARKETS EXPORT OPPORTUNITIES EXPORT PRICES EXPORT RATIO EXPORT RATIOS EXPORT SHARE EXPORT STRUCTURE EXPORT VALUE EXPORT VALUE SHARE EXPORTERS EXPORTS FIRMS FIXED COSTS FOREIGN COMPANIES FOREIGN FIRM FOREIGN FIRMS FOREIGN OWNERSHIP FOREIGN PARTNER FREE TRADE IMPACT OF TRADE INTERMEDIATE INPUTS INTERNATIONAL TRADE MANUFACTURING ESTABLISHMENT MARGINAL COST MARKET ENTRY MARKET RESEARCH MARKETING MULTILATERAL TRADE MULTILATERAL TRADE LIBERALIZATION PRICE EFFECT PRODUCT DIFFERENTIATION PRODUCT QUALITY SALES SPECIALIZATION SPREAD STOCKS STRUCTURAL CHANGE SUBSTITUTES TARIFF REDUCTION TOTAL OUTPUT TOTAL SALES TRADE AGREEMENT TRADE BARRIERS TRADE COSTS TRADE FLOWS TRADE LIBERALIZATION TRADE MODELS TRADE PATTERNS TRADE POLICIES TRADE POLICY TRADE REFORMS TRADE VOLUMES TURNOVER VALUE OF EXPORTS WAGE INEQUALITY WAGES WORLD TRADE Recent developments in trade theory, especially research on multi-product firms, have not been matched by similar progress on the empirical front. This paper aims to fill this gap by presenting a novel set of stylized facts on firm-product dynamics observed during an export boom. This exercise is possible thanks to a unique firm-product level dataset covering about 85 percent of Mexican industrial output for the period 1994-2003. The main findings are as follows. First, there is a substantial degree of product turnover at the firm-product level in response to declining trade costs. Second, "core competencies" - the fact that firms have a cost advantage or greater expertise at manufacturing some of their products - are the main driver of firms' decision to introduce or drop export products. Third, new exporters tend to "start small" in terms of both values and number of exported products. Fourth, even if the expansion in the number of exported products played a role in stimulating Mexican exports, the growth in volume of pre-existing products was the main driver of the export boom. Finally, the introduction of new export products is preceded by a surge in investment. These findings are in line with many, but not all, predictions of recent theoretical work. 2012-06-04T14:40:08Z 2012-06-04T14:40:08Z 2008-09 http://documents.worldbank.org/curated/en/2008/09/9876468/multi-product-exporters-diversification-micro-level-dynamics http://hdl.handle.net/10986/6965 English Policy Research Working Paper No. 4723 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Latin America & Caribbean Mexico |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCESS TO FOREIGN MARKETS ADVERTISING AGGREGATE TRADE ALCOHOLIC BEVERAGES BILATERAL TRADE CHANGES IN TRADE COMPANY COMPARATIVE ADVANTAGE COMPETITORS CONSUMERS CURRENCY DEFLATORS DEVALUATION DEVELOPMENT ECONOMICS DIVERSIFICATION DOMESTIC MARKET ECONOMIC PERFORMANCE ECONOMIC POLICY ECONOMIC RESEARCH EXPANSION EXPORT EXPORT COSTS EXPORT DIVERSIFICATION EXPORT GROWTH EXPORT MARKET EXPORT MARKETS EXPORT OPPORTUNITIES EXPORT PRICES EXPORT RATIO EXPORT RATIOS EXPORT SHARE EXPORT STRUCTURE EXPORT VALUE EXPORT VALUE SHARE EXPORTERS EXPORTS FIRMS FIXED COSTS FOREIGN COMPANIES FOREIGN FIRM FOREIGN FIRMS FOREIGN OWNERSHIP FOREIGN PARTNER FREE TRADE IMPACT OF TRADE INTERMEDIATE INPUTS INTERNATIONAL TRADE MANUFACTURING ESTABLISHMENT MARGINAL COST MARKET ENTRY MARKET RESEARCH MARKETING MULTILATERAL TRADE MULTILATERAL TRADE LIBERALIZATION PRICE EFFECT PRODUCT DIFFERENTIATION PRODUCT QUALITY SALES SPECIALIZATION SPREAD STOCKS STRUCTURAL CHANGE SUBSTITUTES TARIFF REDUCTION TOTAL OUTPUT TOTAL SALES TRADE AGREEMENT TRADE BARRIERS TRADE COSTS TRADE FLOWS TRADE LIBERALIZATION TRADE MODELS TRADE PATTERNS TRADE POLICIES TRADE POLICY TRADE REFORMS TRADE VOLUMES TURNOVER VALUE OF EXPORTS WAGE INEQUALITY WAGES WORLD TRADE |
| spellingShingle |
ACCESS TO FOREIGN MARKETS ADVERTISING AGGREGATE TRADE ALCOHOLIC BEVERAGES BILATERAL TRADE CHANGES IN TRADE COMPANY COMPARATIVE ADVANTAGE COMPETITORS CONSUMERS CURRENCY DEFLATORS DEVALUATION DEVELOPMENT ECONOMICS DIVERSIFICATION DOMESTIC MARKET ECONOMIC PERFORMANCE ECONOMIC POLICY ECONOMIC RESEARCH EXPANSION EXPORT EXPORT COSTS EXPORT DIVERSIFICATION EXPORT GROWTH EXPORT MARKET EXPORT MARKETS EXPORT OPPORTUNITIES EXPORT PRICES EXPORT RATIO EXPORT RATIOS EXPORT SHARE EXPORT STRUCTURE EXPORT VALUE EXPORT VALUE SHARE EXPORTERS EXPORTS FIRMS FIXED COSTS FOREIGN COMPANIES FOREIGN FIRM FOREIGN FIRMS FOREIGN OWNERSHIP FOREIGN PARTNER FREE TRADE IMPACT OF TRADE INTERMEDIATE INPUTS INTERNATIONAL TRADE MANUFACTURING ESTABLISHMENT MARGINAL COST MARKET ENTRY MARKET RESEARCH MARKETING MULTILATERAL TRADE MULTILATERAL TRADE LIBERALIZATION PRICE EFFECT PRODUCT DIFFERENTIATION PRODUCT QUALITY SALES SPECIALIZATION SPREAD STOCKS STRUCTURAL CHANGE SUBSTITUTES TARIFF REDUCTION TOTAL OUTPUT TOTAL SALES TRADE AGREEMENT TRADE BARRIERS TRADE COSTS TRADE FLOWS TRADE LIBERALIZATION TRADE MODELS TRADE PATTERNS TRADE POLICIES TRADE POLICY TRADE REFORMS TRADE VOLUMES TURNOVER VALUE OF EXPORTS WAGE INEQUALITY WAGES WORLD TRADE Iacovone, Leonardo Javorcik, Beata S. Multi-Product Exporters : Diversification and Micro-Level Dynamics |
| geographic_facet |
Latin America & Caribbean Mexico |
| relation |
Policy Research Working Paper No. 4723 |
| description |
Recent developments in trade theory,
especially research on multi-product firms, have not been
matched by similar progress on the empirical front. This
paper aims to fill this gap by presenting a novel set of
stylized facts on firm-product dynamics observed during an
export boom. This exercise is possible thanks to a unique
firm-product level dataset covering about 85 percent of
Mexican industrial output for the period 1994-2003. The main
findings are as follows. First, there is a substantial
degree of product turnover at the firm-product level in
response to declining trade costs. Second, "core
competencies" - the fact that firms have a cost
advantage or greater expertise at manufacturing some of
their products - are the main driver of firms' decision
to introduce or drop export products. Third, new exporters
tend to "start small" in terms of both values and
number of exported products. Fourth, even if the expansion
in the number of exported products played a role in
stimulating Mexican exports, the growth in volume of
pre-existing products was the main driver of the export
boom. Finally, the introduction of new export products is
preceded by a surge in investment. These findings are in
line with many, but not all, predictions of recent
theoretical work. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Iacovone, Leonardo Javorcik, Beata S. |
| author_facet |
Iacovone, Leonardo Javorcik, Beata S. |
| author_sort |
Iacovone, Leonardo |
| title |
Multi-Product Exporters : Diversification and Micro-Level Dynamics |
| title_short |
Multi-Product Exporters : Diversification and Micro-Level Dynamics |
| title_full |
Multi-Product Exporters : Diversification and Micro-Level Dynamics |
| title_fullStr |
Multi-Product Exporters : Diversification and Micro-Level Dynamics |
| title_full_unstemmed |
Multi-Product Exporters : Diversification and Micro-Level Dynamics |
| title_sort |
multi-product exporters : diversification and micro-level dynamics |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2008/09/9876468/multi-product-exporters-diversification-micro-level-dynamics http://hdl.handle.net/10986/6965 |
| _version_ |
1764401166313062400 |