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German Firms in Service Trade

Author

Listed:
  • Markus Kelle
  • Jörn Kleinert

Abstract

We provide firm-level evidence concerning four key facts of services trade in Germany. First, not only firms classified as service firms, but also firms from all industries export and import services. Second, service trade patterns are fairly similar to those in goods trade. Most notably, service trade is dominated by a few large firms that serve many countries, sell several service products, and often export and import services. Differences in firms’ trade values are result from differences in all three margins of trade. Third, there is a strong concentration of firms on one core market and service. Fourth, the patterns are surprisingly similar for services exports and imports.

Suggested Citation

  • Markus Kelle & Jörn Kleinert, 2010. "German Firms in Service Trade," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 56(1), pages 51-72.
  • Handle: RePEc:aeq:aeqaeq:v56_y2010_i1_q1_p51-72
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    References listed on IDEAS

    as
    1. Andrew B. Bernard & J. Bradford Jensen & Stephen J. Redding & Peter K. Schott, 2007. "Firms in International Trade," Journal of Economic Perspectives, American Economic Association, vol. 21(3), pages 105-130, Summer.
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    3. Alexander Vogel & Joachim Wagner, 2016. "Exports and Profitability — First Evidence for German Business Services Enterprises," World Scientific Book Chapters,in: Microeconometrics of International Trade, chapter 8, pages 279-310 World Scientific Publishing Co. Pte. Ltd..
    4. Mayer Thierry & Ottaviano Gianmarco I.P., 2008. "The Happy Few: New Facts on the Internationalization of European Firms Based on Firm-level Evidence," L'industria, Società editrice il Mulino, issue 2, pages 221-244.
    5. Breinlich, Holger & Criscuolo, Chiara, 2011. "International trade in services: A portrait of importers and exporters," Journal of International Economics, Elsevier, vol. 84(2), pages 188-206, July.
    6. Carolina Lennon, 2008. "Trade in services: Cross-border trade vs commercial presence. Evidence of complementarity," PSE Working Papers halshs-00586217, HAL.
    7. Costas Arkolakis & Marc-Andreas Muendler, 2010. "The Extensive Margin of Exporting Products: A Firm-level Analysis," CESifo Working Paper Series 3309, CESifo Group Munich.
    8. Caroline Freund & Diana Weinhold, 2002. "The Internet and International Trade in Services," American Economic Review, American Economic Association, vol. 92(2), pages 236-240, May.
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    10. Thierry Mayer & Marc J. Melitz & Gianmarco I. P. Ottaviano, 2014. "Market Size, Competition, and the Product Mix of Exporters," American Economic Review, American Economic Association, vol. 104(2), pages 495-536, February.
    11. Mary Amiti & Shang-Jin Wei, 2005. "Service Offshoring, Productivity, and Employment; Evidence from the United States," IMF Working Papers 05/238, International Monetary Fund.
    12. repec:pse:psecon:2008-53 is not listed on IDEAS
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    More about this item

    Keywords

    Service trade; firm heterogeneity; intensive and extensive margins of trade;

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L80 - Industrial Organization - - Industry Studies: Services - - - General

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