Kerem Cosar, Paul Grieco, Shengyu Li, Felix Tintelnot, 07 November 2015

Despite low levels of formal trade barriers and recent reductions in global communication and shipping costs, firms still command a disproportionately large market share in their home countries. This column examines home market advantage in the car industry. The results suggest that preference for own-country brands is an important feature of trade and multinational production that is underappreciated in the academic literature.


CEPR Policy Research