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Capacity Constraints and Export Performance: Theory and Evidence from Belgian Manufacturing

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  • Bughin, J.

Abstract

A mark-up model for export and domestic pricing is developed using the dual approach of cost functions and taking explicitly into account the possibility of (short-run) capacity constraints. The model is applied on a panel of Belgian firms to infer product market power on both domestic and export markets, as well as to estimate the effect of export activity on the firm technology and pricing, through the effect of cost flexibility and capacity utilization. Copyright 1996 by Blackwell Publishing Ltd.
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Suggested Citation

  • Bughin, J., 1994. "Capacity Constraints and Export Performance: Theory and Evidence from Belgian Manufacturing," Papers 9401, Universite Libre de Bruxelles - C.E.M.E..
    • Handle: RePEc:fth:ulbeme:9401
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    Cited by:

    1. Karsten Staehr, 2021. "Export performance and capacity pressures in Central and Eastern Europe," International Economics, CEPII research center, issue 165, pages 204-217.
    2. Mr. Claudio A Paiva, 2003. "Trade Elasticities and Market Expectations in Brazil," IMF Working Papers 2003/140, International Monetary Fund.
    3. Lourdes Moreno & Diego Rodríguez, 2004. "Domestic and Foreign Price/Marginal‐cost Margins: an Application to Spanish Manufacturing Firms," Review of International Economics, Wiley Blackwell, vol. 12(1), pages 60-80, February.
    4. Lourdes Moreno Martin & Diego Rodriguez Rodriguez, 2010. "Export activity, persistence and mark-ups," Applied Economics, Taylor & Francis Journals, vol. 42(4), pages 475-488.
    5. Aquilante, Tommaso & Vendrell-Herrero, Ferran, 2021. "Bundling and exporting: Evidence from German SMEs," Journal of Business Research, Elsevier, vol. 132(C), pages 32-44.
    6. Jaumandreu, Jordi & Doraszelski, Ulrich, 2019. "Using Cost Minimization to Estimate Markups," CEPR Discussion Papers 14114, C.E.P.R. Discussion Papers.
    7. Christian Holzner & Mario Larch, 2011. "Capacity Constraining Labor Market Frictions in a Global Economy," CESifo Working Paper Series 3597, CESifo.

    More about this item

    Keywords

    trade policy ; manufacturing industries;

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