Fixed export costs and multi-product firms

Roger Smeets and Harold Creusen

No 188, CPB Discussion Paper from CPB Netherlands Bureau for Economic Policy Analysis

Abstract: This paper has two aims. First, we uncover some salient components of fixed export costs, which play a crucial role in recent heterogeneous firms models of international trade. Second, we investigate whether the importance of these fixed export costs varies with the size of a firm’s export product portfolio. We find that a destination country’s institutional quality, such as the quality of regulation or the extent of corruption, form important impediments to a firm’s export decision, lowering the export probability to up to 10%-points. Moreover, relative to single-product firms, multi-product firms experience additional export probability decreases of around 2%-points.

JEL-codes: F12 F55 (search for similar items in EconPapers)
Date: 2011-08
New Economics Papers: this item is included in nep-com and nep-int
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:cpb:discus:188

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