High-end variety exporters defying gravity: Micro facts and aggregate implications

Martin, Julien;Mayneris, Florian
(2015) Journal of International Economics — Vol. 96, n° 1, p. 55-71 (2015)

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Authors
  • Martin, JulienUniversité du Québec
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  • Mayneris, FlorianUCLouvain
    Author
Abstract
We develop a new methodology to identify high-end variety exporters in French firm-level data. We find that they do not export to more countries, but they export to more distant destinations than low-end ones. We also show that in contrast to low-end exporters, distance has almost no effect on high-end variety export(er)s. Because of this lower sensitivity to distance at the micro-level, specializing in the production of high-end varieties has implications for the geography of aggregate exports. Specializing in high-end varieties allows for a greater geographic diversification of aggregate exports – in particular when demand arises from both neighboring and distant countries. It also makes a country better able to benefit from growth in remote destinations.
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Martin, J., & Mayneris, F. (2015). High-end variety exporters defying gravity: Micro facts and aggregate implications. Journal of International Economics, 96(1), 55-71. https://doi.org/10.1016/j.jinteco.2015.01.008 (Original work published 2015)