Plant level evidence on product mix changes in Chilean manufacturing

• Published in: The journal of international trade & economic development Vol. 21; no. 2; pp. 165 - 195
• Main Author: Navarro, Lucas
• Format: Journal Article
• Language: English
• Published: London Routledge 01-04-2012; Taylor and Francis Journals; Taylor & Francis Ltd
• Series: Journal of International Trade & Economic Development
• Subjects: Chile; Correlation analysis; Development; Economic growth; Economic models; Enterprises; entry and exit; Exports; Heavy industry; heterogeneous plants; Industrial plants; Manufacturing; multiple products; Product mixes; Studies; Trade; Trade models; Chile; United States > US
• ISSN: 0963-8199; 1469-9559
• DOI: 10.1080/09638191003710397

This article analyzes changes in the product mix by Chilean manufacturing plants in the period 1996-2003. Three quarters of the surviving plants changed the set of products produced and more than three quarters of the exporting plants changed the mix of products they exported during the sample period. Plants that changed their product mix contributed 85% of the aggregate growth in real sales of surviving plants between 1996 and 2003. Finally, and in contrast to the US evidence, there is a negative correlation between revenue per product and the number of products. Apart from this, new evidence consistent with recent models of multi-product heterogeneous firms and trade is provided.