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Coping with the Crisis: Recent Evolution in Danish Firms' International Trade Involvement, 2000-2010

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Author Info

  • Kaleb Girma Abreha

    ()
    (Department of Economics and Business, Aarhus University)

  • Valérie Smeets

    ()

  • Frédéric Warzynski

    ()
    (Department of Economics and Business, Aarhus University)

Abstract

Using a highly disaggregated firm-product-destination level data from Denmark, we document salient features of Danish international production in the recent decade. These include systematic variation in export participation of firms across industries, positive correlation between the scope (number of products exported and markets served) and scale of exporting activities, considerable dominance of multi-product and multi-destination firms, existence of carry-along trade, the prevalence of core and peripheral products in exports, a small role of economy-wide entry and exit of firms and products, and a sizable role of firm-level adding and dropping of products and product-destination combinations as a margin of trade adjustment. Finally, we show that firms responded to the latest economic shock mainly by adjusting the scale of exports and imports. At the same time, changing their products and productdestination combinations helped them to mitigate the negative effects of the shock.

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Bibliographic Info

Paper provided by School of Economics and Management, University of Aarhus in its series Economics Working Papers with number 2013-15.

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Length: 29
Date of creation: 04 Sep 2013
Date of revision:
Handle: RePEc:aah:aarhec:2013-15

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Web page: http://www.econ.au.dk/afn/

Related research

Keywords: Foreign trade; Trade collapse; Margins of Trade; Denmark;

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  1. Costas Arkolakis & Marc-Andreas Muendler, 2010. "The Extensive Margin of Exporting Products: A Firm-level Analysis," CESifo Working Paper Series 3309, CESifo Group Munich.
  2. Roberto Alvarez & Ricardo López, 2005. "Exporting and performance: evidence from Chilean plants," Canadian Journal of Economics, Canadian Economics Association, vol. 38(4), pages 1384-1400, November.
  3. Davide Castellani & Francesco Serti & Chiara Tomasi, 2010. "Firms in International Trade: Importers' and Exporters' Heterogeneity in Italian Manufacturing Industry," The World Economy, Wiley Blackwell, vol. 33(3), pages 424-457, 03.
  4. João Amador & Luca Opromolla, 2013. "Product and destination mix in export markets," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 149(1), pages 23-53, March.
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