Testing the Core‐competency Model of Multi‐product Exporters

  • We review the implications of the “core‐competence” model of multi‐product firms, including the “market‐size puzzle”: for most countries, the world market is much larger than the home market, while the costs of accessing foreign markets are relatively low; hence the model predicts that most domestic firms should export more of their core products than they sell domestically; yet, in practice, we do not observe this. Extending the model to allow for investment in export market penetration resolves the puzzle and Mexican data confirm its predictions: in particular, only the largest firms exhibit the dominance of exports over home sales.

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Metadaten
Document Type:Article
Language:English
Author(s):Carsten Eckel, Leonardo Iacovone, Beata Javorcik, J. Peter Neary
Parent Title (English):Review of International Economics
Publication year:2016
Publishing Institution:Hertie School
First Page:699
Last Page:716
DOI:https://doi.org/10.1111/roie.12234
Release Date:2019/05/15
Volume:24
Issue:4
Licence of document (German):Metadaten / metadata
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