The buyer margins of firms' exports

  • We use detailed data on exporters from Costa Rica, Ecuador and Uruguay as well as on their buyers to show that: aggregate exports are disproportionally driven by few multi-buyers exporters; and each multi-buyer exporter's foreign sales of any product are in turn accounted for by few dominant buyers. We propose an analytically solvable multi-country model of endogenous selection in which dominant exporters, dominant products and dominant buyers emerge in parallel as multi-product sellers with heterogeneous technologies compete for buyers with heterogeneous needs. The model not only provides an explanation of the existence of dominant buyers but also makes specific predictions on how the relative importance of dominant buyers should vary across export destinations depending on their market size and accessibility. We show that these predictions are borne out by our data and discuss their welfare implications in terms of gains from trade.

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Metadaten
Author:Jeronimo Carballo, Gianmarco I. P. OttavianoORCiDGND, Christian Volpe Martincus
URN:urn:nbn:de:hebis:30:3-424209
URL:https://ssrn.com/abstract=2875394
DOI:https://doi.org/10.2139/ssrn.2875394
Parent Title (English):Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 561
Series (Serial Number):CFS working paper series (561)
Publisher:Center for Financial Studies
Place of publication:Frankfurt, M.
Document Type:Working Paper
Language:English
Year of Completion:2016
Year of first Publication:2016
Publishing Institution:Universit├Ątsbibliothek Johann Christian Senckenberg
Release Date:2016/12/06
Tag:competition; firm heterogeneity; import-export relations; selection; taste heterogeneity
Issue:November 2016
Page Number:62
HeBIS-PPN:39753549X
Institutes:Wirtschaftswissenschaften / Wirtschaftswissenschaften
Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS)
Dewey Decimal Classification:3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft
3 Sozialwissenschaften / 38 Handel, Kommunikation, Verkehr / 380 Handel, Kommunikation, Verkehr
Sammlungen:Universit├Ątspublikationen
Licence (German):License LogoDeutsches Urheberrecht