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Local product space and firm-level churning in exported products

Author

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  • Cilem Selin Hazir
  • Flora Bellone
  • Cyrielle Gaglio

Abstract

This article explores the determinants of changes to the range of exports at the firm level with a focus on the role played by the firm’s local environment. It extends the model developed by Bernard et al. (2010) to a multiregional setting to account for localized externalities. The model is tested using French micro-data on monoregional manufacturing firms covering the period 2002–2007. Our main finding is that the local product space has an impact on exporters’ product-market entry and exit decisions. Firms tend to modify their exported product mix to achieve congruence with the core products of the locality. Also, firms receive higher revenue from the export of products that are more related to the core capabilities of the locality.

Suggested Citation

  • Cilem Selin Hazir & Flora Bellone & Cyrielle Gaglio, 2019. "Local product space and firm-level churning in exported products," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 28(6), pages 1473-1496.
    • Handle: RePEc:oup:indcch:v:28:y:2019:i:6:p:1473-1496.
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    Cited by:

    1. Flora Bellone & Cilem Selin Hazir & Toshiyuki Matsuura, 2020. "Adjusting to China competition: Evidence from Japanese plant-product-level data," Working Papers hal-03086387, HAL.
    2. Cilem Selin Hazir & Flora Bellone & Cyrielle Gaglio, 2019. "Local product space and firm-level churning in exported products," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 28(6), pages 1473-1496.
    3. Dmitry Kuznetsov, 2021. "Export Product Scope of Russian Firms and Proximity to Local Comparative Advantages [Ассортимент Экспорта Российских Предприятий И Близость К Локальным Сравнительным Преимуществам]," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 1, pages 56-81, February.
    4. repec:hal:spmain:info:hdl:2441/1f59r6ssre9eiqb2rso9ui50m2 is not listed on IDEAS
    5. Nicolas Brisset, 2017. "What Do We Learn from Market Design?," GREDEG Working Papers 2017-03, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    6. Flora Bellone & Cilem Selin Hazir & Toshiyuki Matsuura, 2022. "Adjusting to China competition: Evidence from Japanese plant‐product‐level data," Review of International Economics, Wiley Blackwell, vol. 30(3), pages 732-763, August.
    7. repec:spo:wpmain:info:hdl:2441/1f59r6ssre9eiqb2rso9ui50m2 is not listed on IDEAS

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    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • C49 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Other

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