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Dissecting Trade: Firms, Industries, and Export Destinations

21 Pages Posted: 17 Mar 2004  

Jonathan Eaton

Leonard N. Stern School of Business - Department of Economics; National Bureau of Economic Research (NBER)

Samuel S. Kortum

University of Chicago - Department of Economics; National Bureau of Economic Research (NBER)

Francis Kramarz

Center for Research in Economics and Statistics (CREST); IZA Institute of Labor Economics; Centre for Economic Policy Research (CEPR)

Date Written: March 2004

Abstract

We examine entry across 113 national markets in 16 different industries using a comprehensive data set of French manufacturing firms. The data are unique in indicating how much each firm exports to each destination. Looking across all manufacturers: (1) Firms differ substantially in export participation, with most selling only at home; (2) The number of firms selling to multiple markets falls off with the number of destinations with an elasticity of -2.5; (3) Decomposing French exports to each destination into the size of the market and French share, variation in market share translates nearly completely into firm entry while about 60 percent of the variation in market size is reflected in firm entry. Looking within each of 16 industries we find little variation in these patterns. We propose that any successful model of trade and market structure must confront these facts.

Suggested Citation

Eaton, Jonathan and Kortum, Samuel S. and Kramarz, Francis, Dissecting Trade: Firms, Industries, and Export Destinations (March 2004). NBER Working Paper No. w10344. Available at SSRN: https://ssrn.com/abstract=515238

Jonathan Eaton (Contact Author)

Leonard N. Stern School of Business - Department of Economics ( email )

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New York, NY 10003
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212-995-3932 (Fax)

HOME PAGE: http://www.econ.nyu.edu/user/eatonj/

National Bureau of Economic Research (NBER)

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Samuel S. Kortum

University of Chicago - Department of Economics ( email )

1126 East 59th Street
Chicago, IL 60637
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Francis Kramarz

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Centre for Economic Policy Research (CEPR)

77 Bastwick Street
London, EC1V 3PZ
United Kingdom

Center for Research in Economics and Statistics (CREST) ( email )

15 Boulevard Gabriel Peri
92245 Malakoff Cedex
France
+33 1 4117 6033 (Phone)
+33 1 4117 6046 (Fax)

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