Exporters and importers of services: firm-level evidence on Italy
Abstract
This work contributes to the small but growing body of literature on international trade in services at firm level. Our dataset, based on a new Bank of Italy survey, provides information on exports and imports of services (excluding transportation and travel) in 2008-09 for almost 3,000 Italian industrial and services firms, divided by partner country and type of service. We report a set of stylized facts on trade in services. We also analyze the choice between export and foreign direct investment in services at the firm level, thus innovating with respect to the previous literature using industry data. The main findings are as follows: the export and import of services is highly concentrated in just a few firms; firm-level variation in trade is positively correlated with firm size and productivity; country-level variation is to a large extent explained by the standard gravity variables; distance strongly reduces trade in services in spite of their intangibility; smaller and less productive firms choose to export rather than sell through foreign affiliates.Download Info
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Paper provided by Bank of Italy, Economic Research and International Relations Area in its series Temi di discussione (Economic working papers) with number 877.Length:
Date of creation: Sep 2012
Date of revision:
Handle: RePEc:bdi:wptemi:td_877_12
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Web page: http://www.bancaditalia.it
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Related research
Keywords: trade in services; firm heterogeneity; intensive and extensive margin; foreign affliates; export versus FDI;Find related papers by JEL classification:
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- L80 - Industrial Organization - - Industry Studies: Services - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-10-20 (All new papers)
- NEP-CSE-2012-10-20 (Economics of Strategic Management)
- NEP-INT-2012-10-20 (International Trade)
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Andrea Ariu & Giordano Mion, 2011.
"Service Trade and Occupational Tasks: An Empirical Investigation,"
CEP Discussion Papers
dp1107, Centre for Economic Performance, LSE.
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31/2012, Deutsche Bundesbank, Research Centre.
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