00000nam 2200000za 4500 9.862207 CaOODSP 20221107160945 cr ||||||||||| 180920s2018 oncd ob f000 0 eng d CaOODSP eng eng fre FB3-5/2018-43E-PDF Steingress, Walter. Market size and entry in international trade [electronic resource] : product versus firm fixed costs / by Walter Steingress. [Ottawa] : Bank of Canada, 2018. ii, 44 p. : col. charts. Bank of Canada staff working paper, 1701-9397 ; 2018-43 "September 2018." Includes bibliographical references (p. 22-24). "This paper develops a theoretical framework to infer the nature of fixed costs from the relationship between entry patterns in international markets and destination market size. If fixed costs are at the firm level, firms take advantage of an intrafirm spillover by expanding firm-level product range (scope). Few firms enter with many products and dominate international trade. If fixed costs are at the product level, an interfirm spillover reduces the fixed costs to export for all firms producing the product. Using cross-country data on firm and product, I find empirical evidence consistent with product-level costs. More firms than products enter in larger markets, offering their consumers lower prices and a greater variety of goods within the product category"--Abstract, p. ii. Includes abstract in French. International trade Overhead costs Bank of Canada. Staff working paper (Bank of Canada) 1701-9397 ; 2018-43. (CaOODSP)9.806221 PDF 635 KB https://publications.gc.ca/collections/collection_2018/banque-bank-canada/FB3-5-2018-43-eng.pdf