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Multinational Retailers and Home Country Exports

Author

Listed:
  • Angela Cheptea
  • Charlotte Emlinger
  • Karine Latouche
Abstract
This paper questions whether the overseas expansion of a country’s retailers fosters overall bilateral exports towards these host markets. To address this question, we consider an empirical trade model, where the foreign sales of multinational retailers reduce the fixed and variable trade costs of their conational firms towards the same destination markets. We test our model with data on bilateral exports on a large panel of countries and the foreign sales of world’s largest one hundred retail companies over the 2001-2010 decade. We find a strong positive effect of the overseas presence of retailers of a given country on its exports to those markets. This outcome is far from being trivial, as most products sold in retailers foreign outlets are locally-produced. It testifies that the overseas presence of a country’s retail companies contributes to the reduction of trade costs towards these markets for other firms of the origin country. Our result is robust to different specifications, the use of different sets of instrumental variables and econometric approaches.

Suggested Citation

  • Angela Cheptea & Charlotte Emlinger & Karine Latouche, 2012. "Multinational Retailers and Home Country Exports," Working Papers 2012-34, CEPII research center.
    • Handle: RePEc:cii:cepidt:2012-34
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    References listed on IDEAS

    as
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    Cited by:

    1. Cheptea, Angela & Emlinger, Charlotte & Latouche, Karine, 2014. "Do exporting firms benefit from retail internationalization? Evidence from France," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182706, European Association of Agricultural Economists.
    2. Emlinger, Charlotte & Poncet, Sandra, 2018. "With a little help from my friends: Multinational retailers and China's consumer market penetration," Journal of International Economics, Elsevier, vol. 112(C), pages 1-12.
    3. Angela Cheptea & Charlotte Emlinger & Karine Latouche, 2019. "Exporting firms and retail internationalization: Evidence from France," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 28(3), pages 561-582, June.
    4. Cheptea, Angela & Emlinger, Charlotte & Latouche, Karine, 2013. "Multinational Retailers and Firm-Level Exports," 2013: Employment, Immigration and Trade, December 15-17, 2013, Clearwater Beach, Florida 182499, International Agricultural Trade Research Consortium.
    5. Steinbach, Sandro, 2016. "Similarity in Demand Structures and Foreign Direct Investment in the Food and Beverage Industry," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235906, Agricultural and Applied Economics Association.
    6. Straume, Hans-Martin, 2015. "Trade costs and Norwegian salmon export," Working Papers in Economics 06/15, University of Bergen, Department of Economics.
    7. Angela Cheptea, 2014. "Do multinational retailers affect the export competitveness of host countries?," IAW Discussion Papers 106, Institut für Angewandte Wirtschaftsforschung (IAW).

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    More about this item

    Keywords

    International Trade; Multinational Retailers;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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