The Export Performance of Multi-product Firms facing Asian Competition in Foreign Markets

This paper assesses the impact of Asian competition on the export performance of multi-product firms.Using a unique data set that includes for all Belgian manufacturing firms the bilateral export flows of allproducts to all export destinations for the 1998-2006 period, we estimate the impact of Asian competition on the export intensity and export variety of Belgian firms. In addition we study the impact of several destination market and firm-level characteristics. Similarly, strategies of Belgian exporting companies to cope with Asian companies are analyzed. Our findings indicate that the impact of Asiancompetition on Belgian multi-product exporters is substantial. The effects differ, however, acrossmanufacturing sectors and destination markets. Moreover it appears that various Asian countries affect Belgium’s international competitiveness differently. Finally, firm-level variety expansion and quality upgrading may be appropriate strategies to cope with Asian competition in foreign markets.

Jaar van publicatie:2011

Toegankelijkheid:Open