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Multinational retailers and home country exports

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  • Angela Cheptea

    () (UMR 1302 Structures et Marchés Agricoles, Ressources et Territoires - INRA - Institut National de la Recherche Agronomique - AGROCAMPUS OUEST - SMART - Structures et Marchés Agricoles, Ressources et Territoires)

  • Charlotte Emlinger

    (Centre d'Etudes Prospectives et d'Informations Internationales)

  • Karine Latouche

    () (LERECO CEDRAN - Laboratoire d'Études et de Recherches en Economie - INRA - Institut National de la Recherche Agronomique)

Abstract

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 retailers 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 locallyproduced. 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.

Suggested Citation

  • Angela Cheptea & Charlotte Emlinger & Karine Latouche, 2013. "Multinational retailers and home country exports," Working Papers hal-01208857, HAL.
  • Handle: RePEc:hal:wpaper:hal-01208857
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-01208857
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Cheptea, Angela & Emlinger, Charlotte & Latouche, Karine, 2014. "Do exporting firms benefit from retail internationalization? Evidence from France," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182706, European Association of Agricultural Economists.
    2. Steinbach, Sandro, 2016. "Similarity in Demand Structures and Foreign Direct Investment in the Food and Beverage Industry," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 235906, Agricultural and Applied Economics Association.
    3. Angela Cheptea, 2014. "Do multinational retailers affect the export competitveness of host countries?," IAW Discussion Papers 106, Institut für Angewandte Wirtschaftsforschung (IAW).
    4. Angela Cheptea & Charlotte Emlinger & Karine Latouche, 2015. "Exporting firms and retail internationalization. Evidence from France," Working Papers SMART - LERECO 15-13, INRA UMR SMART-LERECO.
    5. Straume, Hans-Martin, 2015. "Trade costs and Norwegian salmon export," Working Papers in Economics 06/15, University of Bergen, Department of Economics.
    6. Cheptea, Angela & Emlinger, Charlotte & Latouche, Karine, 2013. "Multinational Retailers and Firm-Level Exports," Proceedings Issues, 2013: Employment, Immigration and Trade, December 15-17, 2013, Clearwater Beach, Florida 182499, International Agricultural Trade Research Consortium.
    7. Charlotte Emlinger & Sandra Poncet, 2016. "With a Little Help from My Friends: Multinational Retailers and China's consumer Market Penetration," Working Papers 2016-01, CEPII research center.

    More about this item

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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