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Co-Exportation of Products by Multi-Product Firms

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  • Egger, Peter
  • Jones, Corinne

Abstract

The attention on multi-product firms to date has mainly focused on firm scope, rather than what firms produce. We study what firms produce by developing a heterogeneous firm model accounting for correlations in production efficiencies across products and correlations in consumers' tastes across products and destinations. Our estimation strategy centers on a novel extension of generalized score matching. We fit the model to Chinese exports data, focusing on firms exporting products with ISIC codes C19 (leather, leather products, and footwear) and C18 (wearing apparel, dressing and dyeing of fur). We document clustered co-production structures consistent with correlated efficiencies across products.

Suggested Citation

  • Egger, Peter & Jones, Corinne, 2023. "Co-Exportation of Products by Multi-Product Firms," CEPR Discussion Papers 18683, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:18683
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    More about this item

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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