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Export dynamics and sales at home

Author

Listed:
  • Nicolas Berman

    (Graduate Institute of International and Development Studies - IHEID - Graduate Institute of International and Development studies)

  • Antoine Berthou

    (Banque de France)

  • Jérôme Héricourt

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique)

Abstract

How do rms' sales interact across markets? Are foreign and domestic sales complements or substitutes? Using a large French rm-level database that combine balance-sheet and product-destination-speci c export information over the period 1995-2001, we study the interconnections between exports and domestic sales. We identify exogenous shocks that a ect rm demand on foreign markets to instrument yearly variations in exports. Our results show that exogenous variations in foreign sales are positively associated with domestic sales, even after controlling for changes in domestic demand. A 10% exogenous increase in exports generates a 1.5 to 3% increase in domestic sales in the short-term. This result is robust to various esti-mation techniques, instruments, controls, and sub-samples. It is also supported by the natural experiment of the Asian crisis in the late 1990's. We discuss various channels that may explain this complementarity.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Nicolas Berman & Antoine Berthou & Jérôme Héricourt, 2015. "Export dynamics and sales at home," Post-Print hal-01745621, HAL.
    • Handle: RePEc:hal:journl:hal-01745621
    DOI: 10.1016/j.jinteco.2015.04.001
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    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F44 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Business Cycles
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General

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