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European High-End Products in International Competition

Author

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  • Lionel Fontagné

    () (CES - Centre d'économie de la Sorbonne - CNRS - Centre National de la Recherche Scientifique - UP1 - Université Panthéon-Sorbonne, CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique, PSE - Paris School of Economics)

  • Sophie Hatte

    (PSE - Paris School of Economics, 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," PSE - G-MOND WORKING PAPERS hal-00959394, HAL.
  • Handle: RePEc:hal:gmonwp:hal-00959394
    Note: View the original document on HAL open archive server: https://hal-pse.archives-ouvertes.fr/hal-00959394
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    References listed on IDEAS

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    1. Julien MARTIN & Florian MAYNERIS, 2013. "High-End Variety Exporters Defying Distance: Micro Facts and Macroeconomic Implications," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2013027, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
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    Cited by:

    1. Julien MARTIN & Florian MAYNERIS, 2013. "High-End Variety Exporters Defying Distance: Micro Facts and Macroeconomic Implications," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2013027, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    2. 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.
    3. Bouët, Antoine & Emlinger, Charlotte & Lamani, Viola, 2015. "What Determines Exports of Luxury Products? The Case of Cognac," 2015: Trade and Societal Well-Being, December 13-15, 2015, Clearwater Beach, Florida 229248, International Agricultural Trade Research Consortium.

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    Keywords

    Product differentiation; Market shares; Unit values;

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