Document Type
Discussion Paper
Publication Date
1-1-2016
CFDP Number
2028
CFDP Pages
59
Abstract
We examine multi-product exporters and use firm-product-destination data to quantify export entry barriers. Our general-equilibrium model of multi-product firms generalizes earlier models. To match main facts about multi-product exporters, we estimate our model with rich demand and access cost shocks for Brazilian firms. The estimates document that additional products farther from a firm’s core competency incur higher unit costs, but face lower market access costs. We find that these market access costs differ across destinations and evaluate a scenario that standardizes market access between countries. The resulting welfare gains are similar to eliminating all current tariffs.
Recommended Citation
Arkolakis, Costas; Ganapati, Sharat; and Muendler, Marc-Andreas, "The Extensive Margin of Exporting Products: A Firm-level Analysis" (2016). Cowles Foundation Discussion Papers. 2472.
https://elischolar.library.yale.edu/cowles-discussion-paper-series/2472