4 Changes in Product Mix Over Time
This section looks at changes in product mix of firms over time. In their analysis of U.S. firms, Bernard et al. (2008) find a high degree of product churning within firms. As a starting point, Figure 3 plots the coefficients on the year dummies obtained by regressing the number of products exported by a firm on firm and year fixed effects. The results for India show a steady increase in their graph, suggesting an increase in their extensive margin. For New Zealand, there is more fluctuation observed over time, but the increase is not monotonic.
- Figure 3 – Products per Firm
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Note: Coefficients of the year dummies from the regression of product per firm on year and firm fixed effects.
