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The reverse home-market effect in export. A cross-country study of the extensive margin of exports

Do small countries have higher proportions of firms that export in manufacturing industries than large ones? As small countries are well known to be more open than large ones, it may appear uncontroversial to claim that the answer is yes. Nevertheless, this contradicts predictions from many standard trade models positing a home-market effect in the number of manufacturing firms and exporters. In this article, I present a theoretical model where a home-market effect in the number of firms coexists with a reverse home-market effect in the number of exporters: as in standard models, the number of firms in a small country relative to that in a large one is lower than relative income, but, in contrast to standard models, the relative number of exporters is larger. As a consequence, small countries will have higher proportions firms that export in manufacturing industries – a claim I support empirically.

  • International economics
  • Trade
  • Globalisation
  • International economics
  • Trade
  • Globalisation
Publications
Publications
Report

Market specific fixed and sunk export costs: The impact of learning and spillovers

  • International economics
  • Trade
  • Globalisation
  • International economics
  • Trade
  • Globalisation
Publications
Publications
Report

Sunk export costs: How they influence firms’ export decisions and international trade

  • International economics
  • Trade
  • International economics
  • Trade
Research Project
2012 - 2015 (Completed)

Sustainability and Petroleum Extraction: Corporate and Community Perspectives in Northern Norway and the Russian Arctic (CSROil)

This project aims to identify and reconcile differences in perceptions and practices of sustainability in Northern Norway and Arctic Russia, providing a baseline for cross-border dialo...

  • Development policy
  • Europe
  • Russia and Eurasia
  • The Arctic
  • Climate
  • Energy
  • Development policy
  • Europe
  • Russia and Eurasia
  • The Arctic
  • Climate
  • Energy
Publications
  • Russia and Eurasia
  • The Arctic
Publications
Publications
Scientific article

Mali 2013 : a year of elections and further challenges

  • Africa
  • Africa
Publications
Publications
Book

Handbook of International Relations

  • Diplomacy
  • Diplomacy
Publications
Publications
Scientific article

Afrika : Skjebnetime for Sahel : Analyse

  • Africa
  • Africa
Publications
  • Africa
Publications
Publications
Scientific article

Asian states in the Arctic : opportunities and environmental changes - analysis

  • The Arctic
  • Climate
  • The Arctic
  • Climate
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