IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Multinational Retailers and Home Country Exports

  • Cheptea, Angela
  • Emlinger, Charlotte
  • Latouche, Karine

This paper questions whether the overseas expansion of a country's retailers fosters overall bilateral exports towards these host markets. To address this question, we consider an empirical trade model, where the foreign sales of multinational retailers reduce the fixed and variable trade costs of their co-national firms towards the same destination markets. We test our model with data on bilateral exports on a large panel of countries and the foreign sales of world's largest one hundred retail companies over the 2001-2010 decade. We find a strong positive effect of the overseas presence of a country's retailers on its exports to those markets. This outcome is far from being trivial, as most products sold in retailers foreign outlets are locally-produced. It testifies that the overseas presence of a country's retail companies contributes to the reduction of trade costs towards these markets for other origin country firms. Our result is robust to different specifications, the use of different sets of instrumental variables and econometric approaches.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://purl.umn.edu/142777
Download Restriction: no

Paper provided by International Agricultural Trade Research Consortium in its series 2012: New Rules of Trade?, December 2012, San Diego, California with number 142777.

as
in new window

Length:
Date of creation: 2012
Date of revision:
Handle: RePEc:ags:iat12m:142777
Contact details of provider: Web page: http://iatrcweb.org

More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Emek Basker & Pham Hoang Van, 2008. "Imports "R" Us: Retail Chains as Platforms for Developing-Country Imports," Working Papers 0804, Department of Economics, University of Missouri, revised 12 Aug 2008.
  2. Houssein Guimbard & Sébastien Jean & Mondher Mimouni & Xavier Pichot, 2012. "MAcMap-HS6 2007, an Exhaustive and Consistent Measure of Applied Protection in 2007," International Economics, CEPII research center, issue 130, pages 99-122.
  3. Mayer, Thierry & Zignago, Soledad, 2006. "Notes on CEPII’s distances measures," MPRA Paper 26469, University Library of Munich, Germany.
  4. Helpman, Elhanan, 2006. "Trade, FDI and the Organization of Firms," CEPR Discussion Papers 5589, C.E.P.R. Discussion Papers.
  5. Eckel, Carsten, 2009. "International trade and retailing," BERG Working Paper Series 63, Bamberg University, Bamberg Economic Research Group.
  6. Iacovone, Leonardo & Javorcik, Beata & Keller, Wolfgang & Tybout, James R, 2011. "Supplier Responses to Wal-Mart's Invasion in Mexico," CEPR Discussion Papers 8540, C.E.P.R. Discussion Papers.
  7. Pol Antràs & Arnaud Costinot, 2010. "Intermediated Trade," NBER Working Papers 15750, National Bureau of Economic Research, Inc.
  8. Raff, Horst & Schmitt, Nicolas, 2011. "Manufacturers and retailers in the global economy," Kiel Working Papers 1711, Kiel Institute for the World Economy (IfW).
  9. Javorcik, Beata & Keller, Wolfgang & Tybout, James, 2006. "Openness and industrial response in a Wal-Mart world : a case study of Mexican soaps, detergents, and surfactant producers," Policy Research Working Paper Series 3999, The World Bank.
  10. Emek Basker & Pham Hoang Van, 2007. "Wal-Mart as Catalyst to U.S.-China Trade," Working Papers 0710, Department of Economics, University of Missouri.
  11. Horst Raff & Nicolas Schmitt, 2007. "Buyer Power in International Markets," Discussion Papers dp07-23, Department of Economics, Simon Fraser University.
  12. Antràs, Pol & Costinot, Arnaud, 2010. "Intermediation and Economic Integration," CEPR Discussion Papers 7697, C.E.P.R. Discussion Papers.
  13. John A. Dawson, 2007. "Scoping and conceptualising retailer internationalisation," Journal of Economic Geography, Oxford University Press, vol. 7(4), pages 373-397, July.
  14. JaeBin Ahn & Amit K. Khandelwal & Shang-Jin Wei, 2010. "The Role of Intermediaries in Facilitating Trade," NBER Working Papers 15706, National Bureau of Economic Research, Inc.
  15. Sourafel Girma & Holger Görg & Mauro Pisu, 2008. "Exporting, linkages and productivity spillovers from foreign direct investment," Canadian Journal of Economics, Canadian Economics Association, vol. 41(1), pages 320-340, February.
  16. Stephen Redding & Anthony J. Venables, 2001. "Economic Geography and International Inequality," International Trade 0103003, EconWPA.
  17. Gaulier, Guillaume & Zignago, Soledad, 2004. "Notes on BACI (analytical database of international trade). 1989-2002 version," MPRA Paper 32401, University Library of Munich, Germany.
  18. James E. Anderson & Eric van Wincoop, 2004. "Trade Costs," NBER Working Papers 10480, National Bureau of Economic Research, Inc.
  19. Andrew K. Rose & Eric van Wincoop, 2001. "National Money as a Barrier to International Trade: The Real Case for Currency Union," American Economic Review, American Economic Association, vol. 91(2), pages 386-390, May.
  20. Jeffrey M. Wooldridge, 2001. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262232197, June.
  21. Neil M. Coe & Neil Wrigley, 2007. "Host economy impacts of transnational retail: the research agenda," Journal of Economic Geography, Oxford University Press, vol. 7(4), pages 341-371, July.
  22. Head, Keith & Jing, Ran & Swenson, Deborah L., 2014. "From Beijing to Bentonville: Do multinational retailers link markets?," Journal of Development Economics, Elsevier, vol. 110(C), pages 79-92.
  23. repec:cii:cepiei:2012-q2-130-5 is not listed on IDEAS
  24. Baier, Scott L. & Bergstrand, Jeffrey H., 2009. "Bonus vetus OLS: A simple method for approximating international trade-cost effects using the gravity equation," Journal of International Economics, Elsevier, vol. 77(1), pages 77-85, February.
  25. James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March.
  26. Bernardo S. Blum & Sebastian Claro & Ignatius Horstmann, 2010. "Facts and Figures on Intermediated Trade," American Economic Review, American Economic Association, vol. 100(2), pages 419-23, May.
  27. Thomas Reardon & C. Peter Timmer & Christopher B. Barrett & Julio Berdegué, 2003. "The Rise of Supermarkets in Africa, Asia, and Latin America," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(5), pages 1140-1146.
  28. W. Bruce Traill, 2006. "The Rapid Rise of Supermarkets?," Development Policy Review, Overseas Development Institute, vol. 24(2), pages 163-174, 03.
  29. Hildegunn Kyvik Nordås & Massimo Geloso Grosso & Enrico Pinali, 2008. "Market Structure in the Distribution Sector and Merchandise Trade," OECD Trade Policy Papers 68, OECD Publishing.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:ags:iat12m:142777. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.