The Superstar and the Followers : Intra-Firm Product Complementarity in International Trade
This paper investigates whether the exports of different products by the same firm are systematically interconnected. Using Swedish firm-registry data from 1997-2011, I first document that the distribution of firm export sales is skewed towards their best performing products (‘superstars’). I then use a novel instrumental variable approach to identify if the ‘superstar’ products induce more trade This paper investigates whether the exports of different products by the same firm are systematically interconnected. Using Swedish firm-registry data from 1997-2011, I first document that the distribution of firm export sales is skewed towards their best performing products (‘superstars’). I then use a novel instrumental variable approach to identify if the ‘superstar’ products induce more trade