IDEAS home Printed from https://ideas.repec.org/p/ete/vivwps/579753.html
   My bibliography  Save this paper

Competition and product mix adjustment of multi-product exporters: Evidence from Belgium

Author

Listed:
  • Koen Breemersch

Abstract

This paper studies the effects of competition in a destination market on the product sales distribution of Belgian multi-product firms using the framework of Mayer et al. (2014). We show that in high competition markets multi-product firms export relatively more of their core products thus skewing the sales distribution towards the best-performing varieties of the firm. A calibrated fit indicates that the general productivity effects that are associated with this skewness reaction are potentially large as firms adjust their production process to accommodate the increased demand for its core products. The skewness effect of high competition markets is only observed for products that the firm eventually drops, underlining the importance of the product extensive margin adjustment. The effect is not limited to manufacturing firms, but also extends to intermediaries in trade and is shown to depend on the type of good that is exported.

Suggested Citation

  • Koen Breemersch, 2016. "Competition and product mix adjustment of multi-product exporters: Evidence from Belgium," Working Papers of VIVES - Research Centre for Regional Economics 579753, KU Leuven, Faculty of Economics and Business (FEB), VIVES - Research Centre for Regional Economics.
    • Handle: RePEc:ete:vivwps:579753
    as

    Download full text from publisher

    File URL: https://lirias.kuleuven.be/retrieve/449582
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ete:vivwps:579753. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: library EBIB (email available below). General contact details of provider: https://feb.kuleuven.be/VIVES/vivesenglish/general/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.