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European High-End Products in International Competition

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  • Lionel Fontagné

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique, PSE - Paris School of Economics - ENPC - École des Ponts ParisTech - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique - EHESS - École des hautes études en sciences sociales - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Sophie Hatte

    (PSE - Paris School of Economics - ENPC - École des Ponts ParisTech - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique - EHESS - École des hautes études en sciences sociales - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, UNIROUEN - Université de Rouen Normandie - NU - Normandie Université)

Abstract

We study international competition in high-end products for 416 detailed HS6 product categories marketed by leading French luxury brands. We construct a world database of trade flows for these products in the period 1994-2009, computing unit values of related bilateral trade flows and analyzing competition among the main exporters. We use the observed distribution of unit values to define a high-end market segment. In 2009, Europe's market share (EU27 plus Switzerland) despite suffering some erosion since 1994, represented three-quarters of the world market. Exports of high-end products are shown to be less sensitive to distance than other products, and found more sensitive to destination country wealth than other products, but only in relation to countries already producing a large range of luxury brands.

Suggested Citation

  • Lionel Fontagné & Sophie Hatte, 2013. "European High-End Products in International Competition," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00959394, HAL.
  • Handle: RePEc:hal:cesptp:hal-00959394
    Note: View the original document on HAL open archive server: https://hal-pse.archives-ouvertes.fr/hal-00959394
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    Cited by:

    1. Julien MARTIN & Florian MAYNERIS, 2013. "High-End Variety Exporters Defying Distance: Micro Facts and Macroeconomic Implications," LIDAM Discussion Papers IRES 2013027, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    2. Charlotte Emlinger & Viola Lamani, 2020. "International trade, quality sorting and trade costs: the case of Cognac," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 156(3), pages 579-609, August.
    3. Bouët, Antoine & Emlinger, Charlotte & Lamani, Viola, 2017. "What Determines Exports of Luxury Products? The Case of Cognac," Journal of Wine Economics, Cambridge University Press, vol. 12(1), pages 37-58, February.
    4. 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.
    5. Vincent Boitier & Antoine Vatan, 2014. "Why Do Homogeneous Firms Export Differently ? A Density Externality Approach of Trade," Working Papers 2014-06, Center for Research in Economics and Statistics.
    6. Olivier BARGAIN & Jean-Marie CARDEBAT & Raphaël CHIAPPINI, 2020. "Trade Uncorked: Genetic Resistance and Quality Heterogeneity in Wine Exports," Bordeaux Economics Working Papers 2020-18, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).

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    Product differentiation; Market shares; Unit values;
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