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Local Product Space and Firm Level Churning in Exported Products

Author

Listed:
  • Flora Bellone

    (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UniCA - Université Côte d'Azur)

  • Cilem Selin Hazir

    (GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne - ENS de Lyon - École normale supérieure de Lyon - Université de Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet - Saint-Étienne - CNRS - Centre National de la Recherche Scientifique)

  • Cyrielle Gaglio

    (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UniCA - Université Côte d'Azur)

Abstract

This paper explores the determinants of changes in the range of exports at the firm level with a particular interest in the role played by the locality via product relatedness. To this aim, we introduce a multi-regional setting to the theoretical framework proposed by Bernard et al. (2010), which explains multiple product firms and product switching. We test the propositions of the extended framework using French micro-data that covers information on mono-regional firms operating primarily in manufacturing industry over the period 2002-2007. Our main finding is that the local product space matters in the decisions firms make. Specifically, firms tend to modify their mix of exported products such that their production and export capabilities get more aligned with capabilities that lie beneath core capabilities of the region. Our results also suggest that once firms alter their range of exports, among all new products they start exporting, they enjoy greater export revenues in those that are more related to the core capabilities of the locality.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Flora Bellone & Cilem Selin Hazir & Cyrielle Gaglio, 2017. "Local Product Space and Firm Level Churning in Exported Products," Working Papers hal-01676952, HAL.
    • Handle: RePEc:hal:wpaper:hal-01676952
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    Cited by:

    1. 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.
    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. Liping Qiu & Lihua Yang & Haiyan Zhou & Feng Hu, 2024. "Deconstruction of green product innovation drivers for regional export-oriented industrial enterprises in China: the product space perspective," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-15, December.
    4. repec:rnp:ecopol:s2103 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. repec:spo:wpmain:info:hdl:2441/1f59r6ssre9eiqb2rso9ui50m2 is not listed on IDEAS

    More about this item

    Keywords

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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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