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High-end variety exporters defying gravity: Micro facts and aggregate implications

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  • Martin, Julien
  • Mayneris, Florian

Abstract

We develop a new methodology to identify high-end variety exporters in French firm-level data. We find that they do not export to more countries, but they export to more distant destinations than low-end ones. We also show that in contrast to low-end exporters, distance has almost no effect on high-end variety export(er)s. Because of this lower sensitivity to distance at the micro-level, specializing in the production of high-end varieties has implications for the geography of aggregate exports. Specializing in high-end varieties allows for a greater geographic diversification of aggregate exports – in particular when demand arises from both neighboring and distant countries. It also makes a country better able to benefit from growth in remote destinations.

Suggested Citation

  • Martin, Julien & Mayneris, Florian, 2015. "High-end variety exporters defying gravity: Micro facts and aggregate implications," Journal of International Economics, Elsevier, vol. 96(1), pages 55-71.
  • Handle: RePEc:eee:inecon:v:96:y:2015:i:1:p:55-71
    DOI: 10.1016/j.jinteco.2015.01.008
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    References listed on IDEAS

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    Cited by:

    1. Lisandra Flach & Florian Unger, 2016. "Quality and Gravity in International Trade," CESifo Working Paper Series 6080, CESifo Group Munich.
    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. Lionel Fontagné & Sophie Hatte, 2013. "European High-End Products in International Competition," Working Papers hal-00959394, HAL.
    4. Joachim Wagner, 2016. "A survey of empirical studies using transaction level data on exports and imports," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 152(1), pages 215-225, February.
    5. repec:hal:cesptp:hal-00959394 is not listed on IDEAS
    6. Ciani, Andrea & Bartoli, Francesca, 2015. "Export quality upgrading under credit constraints," DICE Discussion Papers 191, University of Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    7. Stefaan Decramer & Catherine Fuss & Jozef Konings, 2016. "How Do Exporters React to Changes in Cost Competitiveness?," The World Economy, Wiley Blackwell, vol. 39(10), pages 1558-1583, October.
    8. Lionel Fontagné & Sophie Hatte, 2014. "European High-End Varieties in International Competition," Working Papers 2014-27, CEPII research center.
    9. Ciani, Andrea, 2017. "Income inequality and the quality of imports," DICE Discussion Papers 245, University of Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    10. Matthieu Crozet & Julian Hinz, 2016. "Collateral Damage: The impact of the Russia sanctions on sanctioning countries’ exports," Working Papers 2016-16, CEPII research center.
    11. Lionel Fontagné & Sophie Hatte, 2013. "European High-End Products in International Competition," PSE - G-MOND WORKING PAPERS hal-00959394, HAL.
    12. Anna Ray & Antoine Vatan, 2013. "Demand for Luxury Goods in a World of Income Disparities," Working Papers hal-00959398, HAL.
    13. Flora Bellone & Patrick Musso & Lionel Nesta & Frederic Warzynski, 2016. "International trade and firm-level markups when location and quality matter," Journal of Economic Geography, Oxford University Press, vol. 16(1), pages 67-91.
    14. repec:hal:cesptp:hal-00959398 is not listed on IDEAS
    15. Crozet, Matthieu & Hinz, Julian, 2016. "Friendly fire - the trade impact of the Russia sanctions and counter-sanctions," Kiel Working Papers 2059, Kiel Institute for the World Economy (IfW).
    16. Lionel Fontagné & Sophie Hatte, 2016. "European High-End Varieties in International Competition," Working Papers hal-01299820, HAL.

    More about this item

    Keywords

    Vertical differentiation; Gravity; Distance; Volatility;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality

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