Abstract

In this paper, we propose a statistical model of multi-product exporters to characterize the null hypothesis of random product size distribution. It serves as a benchmark to test the empirical facts and predictions of theoretical models, including the models featuring core-competencies, productivity differences, and economies of scope. The model accounts for some well-documented differences between large and small scope exporters that have motivated many theoretical models. It provides a particularly good fit for patterns that involve order statistics, such as the differences between how much large and small scope exporters sell in their best/least selling products and variation in the ratio of sales between the best and the second best selling products.

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