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Export markets: substitutes, complements, or independent?

Author

Listed:
  • Mari José Aranguren

    (Orkestra-Deusto and Deusto Business School, University of Deusto, Camino de Mundaiz 50, 20012 Donostia - San Sebastián (Spain))

  • Sergi Juan de Lucio

    (Universidad Antonio de Nebrija and Universidad de Alcalá. Pza. San Diego, s/n, 28801, Alcalá de Henares (Spain))

  • Raúl Mínguez

    (Universidad Antonio de Nebrija. Calle de Santa Cruz de Marcenado, 27, 28015, Madrid (Spain))

  • Asier Minondo

    (Corresponding author. Deusto Business School, University of Deusto, Camino de Mundaiz 50, 20012 Donostia - San Sebastián (Spain))

  • Francisco Requena

    (Department of Economic Structure, University of Valencia, Avda. dels Tarongers s/n, 46022 Valencia (Spain))

Abstract

Using a large sample of export transactions in Spain over the period 2010-2017, we explore whether firms treat export markets as substitutes, complements, or independent. We find that an exogenous change in revenue in a firm's top export destination does not change its revenue in other destinations. A firm does not have either a larger probability to increase the number of export destinations when it experiences an exogenous drop in revenue in its top export destination. These results suggest that a shock in firms' top export market does not affect their decisions in other export markets.

Suggested Citation

  • Mari José Aranguren & Sergi Juan de Lucio & Raúl Mínguez & Asier Minondo & Francisco Requena, 2019. "Export markets: substitutes, complements, or independent?," Working Papers 1918, Department of Applied Economics II, Universidad de Valencia.
    • Handle: RePEc:eec:wpaper:1918
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    References listed on IDEAS

    as
    1. Berman, Nicolas & Berthou, Antoine & Héricourt, Jérôme, 2015. "Export dynamics and sales at home," Journal of International Economics, Elsevier, vol. 96(2), pages 298-310.
    2. Miguel Almunia & Pol Antràs & David Lopez-Rodriguez & Eduardo Morales, 2021. "Venting Out: Exports during a Domestic Slump," American Economic Review, American Economic Association, vol. 111(11), pages 3611-3662, November.
    3. JaeBin Ahn & Alexander F. McQuoid, 2017. "Capacity Constrained Exporters: Identifying Increasing Marginal Cost," Economic Inquiry, Western Economic Association International, vol. 55(3), pages 1175-1191, July.
    4. Juan de Lucio & Raúl Mínguez & Asier Minondo & Francisco Requena, 2018. "The variation of export prices across and within firms," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 154(2), pages 327-346, May.
    5. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
    6. Blum, Bernardo S. & Claro, Sebastian & Horstmann, Ignatius J., 2013. "Occasional and perennial exporters," Journal of International Economics, Elsevier, vol. 90(1), pages 65-74.
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    Cited by:

    1. Asier Minondo, 2023. "Exporters' reaction to positive foreign demand shocks," Review of International Economics, Wiley Blackwell, vol. 31(4), pages 1271-1285, September.
    2. Mathias Juust, 2021. "Trade Effects Of A Negative Export Shock On Direct Exporters And Wholesalers," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 133, Faculty of Economics and Business Administration, University of Tartu (Estonia).

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    More about this item

    Keywords

    exports; Spain; manufacturing;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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