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

Listed author(s):
  • Martin, Julien
  • Mayneris, Florian

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.

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File URL: http://www.sciencedirect.com/science/article/pii/S0022199615000288
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Article provided by Elsevier in its journal Journal of International Economics.

Volume (Year): 96 (2015)
Issue (Month): 1 ()
Pages: 55-71

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Handle: RePEc:eee:inecon:v:96:y:2015:i:1:p:55-71
DOI: 10.1016/j.jinteco.2015.01.008
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505552

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