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CEP/LSE International Economics Seminars

Multi-product Exporters: Facts and Fiction

Lena Sheveleva (Cardiff University)

Wednesday 26 May 2021 12:30 - 14:00


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About this event

In this paper, we propose a statistical model of multi-product exporters to characterize the null hypothesis of random product size distribution. It serves as a benchmark to test the empirical facts and predictions of theoretical models. We show that the statistical model accounts for some well-documented differences between large and small scope exporters that are consistent with many theoretical models, including the ones featuring core competencies, productivity differences, and economies of scope. It provides a particularly good fit for patterns that involve order statistics, such as the differences between how much large and small scope exporters sell in their best/least selling products and variation in the ratio of sales between the best and the second best selling products.

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International Economics Seminars are part of the CEP's Trade programme.