Trading firms in the Spanish services sector
AbstractIn this study, I analyze the characteristics of trading firms in the Spanish service sector. I reveal that half of the service firms in Spain operate only in their local markets, whereas one-third of the examined service firms trade with non-local areas of Spain, and fewer than 20% of Spanish service firms trade with other nations. Similar to those in the manufacturing sector, trading firms in the service sector exhibit premia relative to non-traders with respect to size, labor productivity and average wages. Larger premia are observed for firms that trade with more distant markets and for firms that participate in bidirectional trade. Service firms that trade with non-local areas of Spain also exhibit similar premia relative to firms that trade only in their regional markets. I demonstrate that compared with non-trading firms, firms that engage in trade with foreign countries are more productive even before they have commenced their trading activities. However, I do not find that the initiation of trade with foreign nations by trading firms is followed by improvements in the productivity of these firms relative to non-trading firms.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 43224.
Date of creation: 11 Dec 2012
Date of revision:
exports; services; firm-level evidence; Spain; productivity; heterogeneity;
Find related papers by JEL classification:
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F19 - International Economics - - Trade - - - Other
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