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The intensive and extensive margins of trade: decomposing exports growth differences across Spanish Regions

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  • Uribe-Etxeberria, Asier Minondo

    ()
    (University of Deusto)

  • Requena Silvente , Francisco

    (University of Valencia)

Abstract

Why do exports grow faster in some regions than in others? The regional literature has traditionally answered this question using a shift-share analysis, which focuses on regional differences in the composition of international exports by industry and destination. In this paper we apply an intensive/extensive margin decomposition framework, which separates the role of new trade relationships, product survival and product deepening to explain the differences in international exports growth across Spanish regions. Unlike the predominance role of the intensive margin in country-level studies, our results show that both the intensive and the extensive margin can be very important components of regional exports growth. Moreover, the relevance of each component varies to a great extent across regions. Our findings suggest that policies implemented to promote exports should be designed at the regional level.

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Bibliographic Info

Article provided by Asociación Española de Ciencia Regional in its journal Investigaciones Regionales.

Volume (Year): (2012)
Issue (Month): 23 ()
Pages: 53-76

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Handle: RePEc:ris:invreg:0013

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Related research

Keywords: international exports; growth; intensive margin; extensive margin; regions; Spain;

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  1. Tibor Besedes & Thomas J. Prusa, 2007. "The Role of Extensive and Intensive Margins and Export Growth," NBER Working Papers 13628, National Bureau of Economic Research, Inc.
  2. Jonathan Eaton & Marcela Eslava & Maurice Kugler & James Tybout, 2007. "Export Dynamics in Colombia:Firm-Level Evidence," BORRADORES DE ECONOMIA 003957, BANCO DE LA REPÚBLICA.
  3. David Hummels & Peter J. Klenow, 2005. "The Variety and Quality of a Nation's Exports," American Economic Review, American Economic Association, vol. 95(3), pages 704-723, June.
  4. Gabriel J. Felbermayr & Wilhelm Kohler, 2004. "Exploring the Intensive and Extensive Margins of World Trade," CESifo Working Paper Series 1276, CESifo Group Munich.
  5. Michael Kitson & Ron Martin & Peter Tyler, 2004. "Regional Competitiveness: An Elusive yet Key Concept?," Regional Studies, Taylor & Francis Journals, vol. 38(9), pages 991-999.
  6. Brenton, Paul & Newfarmer, Richard, 2007. "Watching more than the Discovery channel : export cycles and diversification in development," Policy Research Working Paper Series 4302, The World Bank.
  7. Rubinstein, Yona & Helpman, Elhanan & Melitz, Marc, 2008. "Estimating Trade Flows: Trading Partners and Trading Volumes," Scholarly Articles 3228230, Harvard University Department of Economics.
  8. Masaaki Kotabe & Michael R Czinkota, 1992. "State Government Promotion of Manufacturing Exports: A Gap Analysis," Journal of International Business Studies, Palgrave Macmillan, vol. 23(4), pages 637-658, December.
  9. Anne Marie Gleeson & Frances Ruane, 2007. "Irish Manufacturing Export Dynamics: Evidence of Exporter Heterogeneity in Boom and Slump Periods," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 143(2), pages 375-388, July.
  10. Juan de Lucio & Ra�l Mínguez-Fuentes & Asier Minondo & Francisco Requena-Silvente, 2011. "The extensive and intensive margins of Spanish trade," International Review of Applied Economics, Taylor & Francis Journals, vol. 25(5), pages 615-631, January.
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