Exporters' characteristics and the margins of trade
AbstractThis paper investigates the influence of exporting countries' characteristics on the number of exporters (extensive margin) and average exports value per firm (intensive margin). For that purpose, we use a new database compiled by the OECD and Eurostat in year 2005, which allows the calculation of trade margins in bilateral relationships involving a large number of exporting and importing countries. We find that there is almost a one to one relationship between exporters' GDP and the number of firms that participate in export markets. This proportionality remains when we decompose GDP into an employment component and a labor productivity component. Our results also show that exporters' labor productivity is positively linked with the intensive margin of exports. These findings are in line with trade models with product differentiation and heterogeneity in firm productivities, where the fixedcost of entering foreign markets is not uniform across firms.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Department of Applied Economics II, Universidad de Valencia in its series Working Papers with number 1117.
Length: 9 pages
Date of creation: Jun 2011
Date of revision:
Contact details of provider:
Postal: Edifici Departamental Oriental, Campus dels Tarongers, Avda. dels Tarongers, S/N (4P15), 46022 - València
Phone: 963 82 83 49
Fax: 963 82 83 54
Web page: http://www.estructuraeconomica.es
More information through EDIRC
trade margins; gravity equation; trade costs; exporting firms; OECD;
Other versions of this item:
- Asier Minondo & Francisco Requena, 2012. "Exporters' characteristics and the margins of trade," Economics and Business Letters, Economics and Business Letters, Universidad de Oviedo, vol. 1(2).
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-06-25 (All new papers)
- NEP-ENE-2011-06-25 (Energy Economics)
- NEP-ENV-2011-06-25 (Environmental Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Péguin-Feissolle, Anne & Strikholm, Birgit & Teräsvirta, Timo, 2007.
"Testing the Granger noncausality hypothesis in stationary nonlinear models of unknown functional form,"
Working Paper Series in Economics and Finance
672, Stockholm School of Economics, revised 18 Jan 2012.
- Anne Péguin-Feissolle & Birgit Strikholm & Timo Teräsvirta, 2008. "Testing the Granger noncausality hypothesis in stationary nonlinear models of unknown functional form," CREATES Research Papers 2008-19, School of Economics and Management, University of Aarhus.
- Jing Li & Junsoo Lee, 2009.
"ADL tests for threshold cointegration,"
SDSU Working Papers in Progress
22009, South Dakota State University, Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Silviano Esteve).
If references are entirely missing, you can add them using this form.