Testing the core-competency model of multi-product exporters
We review the implications of the "core competence" model of multi-product firms, including the “market-size paradox”: for most countries, the world market is much larger than the home market, while the costs of accessing foreign markets are relatively low; henc...
| Main Authors: | , , , |
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| Format: | Working paper |
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University of Oxford
2015
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| _version_ | 1797101907516325888 |
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| author | Javorcik, B Neary, P Eckel, C Iacovone, L |
| author_facet | Javorcik, B Neary, P Eckel, C Iacovone, L |
| author_sort | Javorcik, B |
| collection | OXFORD |
| description | We review the implications of the "core competence" model of multi-product firms, including the “market-size paradox”: for most countries, the world market is much larger than the home market, while the costs of accessing foreign markets are relatively low; hence the model predicts that most domestic firms should export more of their core products than they sell domestically; yet, in practice, we do not observe this. Extending the model to allow for investment in export market penetration resolves the puzzle, and Mexican data confirm its predictions: in particular,only the largest firms exhibit the dominance of exports over home sales. |
| first_indexed | 2024-03-07T05:58:31Z |
| format | Working paper |
| id | oxford-uuid:eb5bb141-7b83-4a75-a40d-9897e804ba38 |
| institution | University of Oxford |
| last_indexed | 2024-03-07T05:58:31Z |
| publishDate | 2015 |
| publisher | University of Oxford |
| record_format | dspace |
| spelling | oxford-uuid:eb5bb141-7b83-4a75-a40d-9897e804ba382022-03-27T11:09:06ZTesting the core-competency model of multi-product exportersWorking paperhttp://purl.org/coar/resource_type/c_8042uuid:eb5bb141-7b83-4a75-a40d-9897e804ba38Bulk import via SwordSymplectic ElementsUniversity of Oxford2015Javorcik, BNeary, PEckel, CIacovone, LWe review the implications of the "core competence" model of multi-product firms, including the “market-size paradox”: for most countries, the world market is much larger than the home market, while the costs of accessing foreign markets are relatively low; hence the model predicts that most domestic firms should export more of their core products than they sell domestically; yet, in practice, we do not observe this. Extending the model to allow for investment in export market penetration resolves the puzzle, and Mexican data confirm its predictions: in particular,only the largest firms exhibit the dominance of exports over home sales. |
| spellingShingle | Javorcik, B Neary, P Eckel, C Iacovone, L Testing the core-competency model of multi-product exporters |
| title | Testing the core-competency model of multi-product exporters |
| title_full | Testing the core-competency model of multi-product exporters |
| title_fullStr | Testing the core-competency model of multi-product exporters |
| title_full_unstemmed | Testing the core-competency model of multi-product exporters |
| title_short | Testing the core-competency model of multi-product exporters |
| title_sort | testing the core competency model of multi product exporters |
| work_keys_str_mv | AT javorcikb testingthecorecompetencymodelofmultiproductexporters AT nearyp testingthecorecompetencymodelofmultiproductexporters AT eckelc testingthecorecompetencymodelofmultiproductexporters AT iacovonel testingthecorecompetencymodelofmultiproductexporters |