Publication
2013
This paper presents a new trade theory model which is based on a cross-sectional dataset analysis of firm level exports for 116 countries. The findings of the analysis indicate that a home market effect in domestic sales of manufactured goods is found to co-exist with a reversed home market effect in exports of manufactured goods. It also finds that market conditions, rather than firm-level differences in marginal costs, are the main determinants of the number of exporting manufacturing firms. As a consequence of these results, the author argues that the extensive margin of exports decreases with relative size of the home market.
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English (PDF, 57 pages, 1.0 MB) |
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Author | Hege Medin |
Series | NUPI Working Papers |
Issue | 826 |
Publisher | Norwegian Institute of International Affairs (NUPI) |
Copyright | © 2013 Norwegian Institute of International Affairs (NUPI) |