The superstar and the followers: Intra-firm product complementarity in international trade
Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt
Dokumenter
- Preprint
Indsendt manuskript, 959 KB, PDF-dokument
Export sales of multi-product firms are known to be skewed towards their best performing core products. Less is known about the large number of products outside the core that still account for a considerable share of the export value. I use high-quality Swedish firm-registry data to investigate if the exports of core and non-core products are systematically interconnected. Using a novel instrumental variable approach, I find evidence that the exports of non-core products respond to trade of the core. Conversely, the same complementarity is not found using non-core products as placebo-cores. Decomposing the response, I find that over a quarter of the effect can be attributed to price changes of non-core products, suggestive of demand-side explanations. The main contribution of this paper is identifying a new, sizeable, and systematic within-firm one-way complementarity between products that can explain non-core product trade flows. Ignoring this pattern of cross-product dependence may lead to an under-emphasis on the core and over-emphasis on individual trade flows as products should not be viewed in isolation, since the ‘superstar’ core has (contemporaneous) followers.
Originalsprog | Engelsk |
---|---|
Tidsskrift | Journal of Economic Behavior & Organization |
Vol/bind | 117 |
Sider (fra-til) | 277-304 |
ISSN | 0167-2681 |
DOI | |
Status | Udgivet - 2020 |
- Det Samfundsvidenskabelige Fakultet
Forskningsområder
Antal downloads er baseret på statistik fra Google Scholar og www.ku.dk
Ingen data tilgængelig
ID: 246671215