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Foreign market conditions and export performance: does 'crowdedness' reduce exports?

Breinlich, Holger and Tucci, Alessandra (2011) 'Foreign market conditions and export performance: does 'crowdedness' reduce exports?' Canadian Journal of Economics, 44 (3). pp. 991-1019. ISSN 0008-4085

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This paper analyzes the link between firm exports and the competitive environment in foreign markets. We derive a theory-based econometric specification linking market-specific exports to foreign demand and the degree of a market's `crowdedness,' which depends on the number and efficiency of firms competing there and the barriers impeding their access. Estimates on a large sample of Italian firms indicate that increased crowdedness has reduced Italian exports, but only by 0.2%-0.3% per year. This is substantially less than the contribution of other factors such as higher unit labour costs or weak demand growth in the EU15.

Item Type: Article
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Social Sciences > Economics, Department of
Depositing User: Jim Jamieson
Date Deposited: 03 Jul 2012 12:01
Last Modified: 04 Sep 2013 10:11

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