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High-end variety exporters defying distance: micro facts and macroeconomic implications

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  • MARTIN, Julien

    ()
    (Department of Economics, Université du Québec à Montréal)

  • MAYNERIS , Florian

    ()
    (Université catholique de Louvain, IRES & CORE, Belgium)

  • ,

Abstract

We develop a new methodology to identify high-end variety exporters in French firm- level data. We show that they do not export to many more countries, but they export to more distant ones. This comes with a greater geographic diversification of their aggregate exports. These facts are explained by a lower sensitivity to distance of high-end variety export(er)s. We also show that high-end export(er)s are more sensitive to the average income of the destination country. Because of this different sensitivity to gravity variables, the within-product specialization of a country in the production of high-end varieties is likely to affect its export growth and volatility. We show that a higher sensitivity to per capita income tends to increase the volatility of high-end variety exports. However, a lower sensitivity to distance reduces volatility through a greater geographic diversification. Furthermore, we point out that a lower sensitivity to distance allows high-end varieties to benefit more from growth in more distant markets.

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Bibliographic Info

Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2013061.

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Date of creation: 11 Dec 2013
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Handle: RePEc:cor:louvco:2013061

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Keywords: gravity; distance; firm-level data; growth; volatility;

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Cited by:
  1. Lionel Fontagné & Sophie Hatte, 2013. "European High-End Products in International Competition," PSE - G-MOND WORKING PAPERS hal-00959394, HAL.
  2. Anna Ray & Antoine Vatan, 2013. "Demand for Luxury Goods in a World of Income Disparities," PSE - G-MOND WORKING PAPERS hal-00959398, HAL.
  3. repec:hal:cesptp:hal-00959394 is not listed on IDEAS
  4. repec:hal:cesptp:hal-00959398 is not listed on IDEAS

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