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The structure and the determinants of the trade of SME products

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  • Sawako Maruyama

    ()
    (Graduate School of Economics, Kobe University)

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    Abstract

    This paper aims to investigate the structure and the determinants of the trade of products manufactured by small- and medium-sized enterprises. For this purpose, trade database for selected SME-based industries is prepared. Analyzing this database, the following three findings are obtained. First, firms in SME-based industries are facing a large inflow of imported goods, while the volume of their export is relatively small. Secondly, the share of Asian countries in the trade of SME products is larger than overall trade. Thirdly, the gravity model can be applied for the trade of SME products. In some cases, distance and difference of income level tend to be more sensitive for SME products than overall trade. These results are consistent with the labor-intensive characteristics of SME products.

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    File URL: http://www.econ.kobe-u.ac.jp/RePEc/koe/wpaper/2013/1304.pdf
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    Bibliographic Info

    Paper provided by Graduate School of Economics, Kobe University in its series Discussion Papers with number 1304.

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    Length: 34pages
    Date of creation: Mar 2013
    Date of revision:
    Handle: RePEc:koe:wpaper:1304

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    Web page: http://www.econ.kobe-u.ac.jp
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    Related research

    Keywords: Trade; Gravity model; Small and Medium-sized Enterprises(SMEs); Manufacturing;

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    1. David Hummels & Alexandre Skiba, 2004. "Shipping the Good Apples Out? An Empirical Confirmation of the Alchian-Allen Conjecture," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 112(6), pages 1384-1402, December.
    2. Eiichi Tomiura, 2004. "Import Competition and Employment in Japan: Plant Startup, Shutdown and Product Changes," The Japanese Economic Review, Japanese Economic Association, Japanese Economic Association, vol. 55(2), pages 141-152.
    3. Ahn, JaeBin & Khandelwal, Amit K. & Wei, Shang-Jin, 2011. "The role of intermediaries in facilitating trade," Journal of International Economics, Elsevier, Elsevier, vol. 84(1), pages 73-85, May.
    4. Andrew B. Bernard & Marco Grazzi & Chiara Tomasi, 2010. "Intermediaries in international trade : Direct versus indirect modes of export," Working Paper Research, National Bank of Belgium 199, National Bank of Belgium.
    5. Urata, Shujiro & Kawai, Hiroki, 2000. " The Determinants of the Location of Foreign Direct Investment by Japanese Small and Medium-Sized Enterprises," Small Business Economics, Springer, Springer, vol. 15(2), pages 79-103, September.
    6. Kawai, Hiroki & Urata, Shujiro, 2002. " Entry of Small and Medium Enterprises and Economic Dynamism in Japan," Small Business Economics, Springer, Springer, vol. 18(1-3), pages 41-51, Feb.- May.
    7. Richard Baldwin & James Harrigan, 2011. "Zeros, Quality, and Space: Trade Theory and Trade Evidence," American Economic Journal: Microeconomics, American Economic Association, American Economic Association, vol. 3(2), pages 60-88, May.
    8. Eiichi Tomiura, 2001. "The Impact of Import Competition on Japanese Manufacturing Employment," Discussion Paper Series, Research Institute for Economics & Business Administration, Kobe University 120, Research Institute for Economics & Business Administration, Kobe University.
    9. John M. Abowd & Richard B. Freeman, 1991. "Immigration, Trade and the Labor Market," NBER Books, National Bureau of Economic Research, Inc, National Bureau of Economic Research, Inc, number abow91-1.
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