We provide a novel set of stylized facts on firms engaging in international trade in services, usingunique firm-level data on services exports and imports in the United Kingdom in 2000- 2005. Lessthan 10% of firms trade in services but they can be found in all sectors of the UK economy. While theservices sector accounts for 80% of total exports and imports, the frequency and trade intensity ofservices traders is often higher in sectors such as high- tech manufacturing. Services traders arebigger, more productive and are more likely to be foreign owned or part of a multinational enterprise.These 'trade premia' are smaller then for goods traders, however, with the exception of skill intensitywhich is higher among services traders. There are also significant differences between exporters andimporters of services. Furthermore, we show that most firms only export or import a single servicetype and trade with a small number of countries. Trade volume, employment, turnover and valueadded are highly concentrated among a small group of firms trading with many countries and/or inmany services types. These firms are characterised by bigger size and higher than averageproductivity, all of which seem to be principally correlated with more trade along the intensive margin(trade per services and country) .although there are a number of noteworthy exceptions. Interestingly,trade is also concentrated within .rms. The top export and import destination make up 70% of theaverage firm's total trade and the top services type around 90%. This strong concentration is stillpresent among firms trading with many countries and/or in many products.
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Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number
dp0901.
Find related papers by JEL classification: F14 - International Economics - - Trade - - - Country and Industry Studies of Trade F19 - International Economics - - Trade - - - Other F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
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Andrew B. Bernard & J. Bradford Jensen & Stephen J. Redding & Peter K. Schott, 2007.
"Firms in International Trade,"
NBER Working Papers
13054, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions:
Andrew B. Bernard & J. Bradford Jensen & Stephen Redding & Peter K. Schott, 2007.
"Firms in International Trade,"
CEP Discussion Papers
dp0795, Centre for Economic Performance, LSE.
[Downloadable!]
Andrew Bernard & J. Bradford Jensen & Stephen Redding & Peter Schott, 2007.
"Firms in International Trade,"
Working Papers
07-14, Center for Economic Studies, U.S. Census Bureau.
[Downloadable!]