Ontology highlight
ABSTRACT:
SUBMITTER: Costinot A
PROVIDER: S-EPMC6451965 | biostudies-literature | 2019 May
REPOSITORIES: biostudies-literature
Costinot Arnaud A Donaldson Dave D Kyle Margaret M Williams Heidi H
The quarterly journal of economics 20190121 2
The home-market effect, first hypothesized by Linder (1961) and later formalized by Krugman (1980), is the idea that countries with larger demand for some products at home tend to have larger sales of the same products abroad. In this article, we develop a simple test of the home-market effect using detailed drug sales data from the global pharmaceutical industry. The core of our empirical strategy is the observation that a country's exogenous demographic composition can be used as a predictor o ...[more]