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The intensive and extensive margins of trade: decomposing exports growth differences across Spanish Regions

Author

Listed:
  • Uribe-Etxeberria, Asier Minondo

    () (University of Deusto)

  • Requena Silvente , Francisco

    (University of Valencia)

Abstract

Why do exports grow faster in some regions than in others? The regional literature has traditionally answered this question using a shift-share analysis, which focuses on regional differences in the composition of international exports by industry and destination. In this paper we apply an intensive/extensive margin decomposition framework, which separates the role of new trade relationships, product survival and product deepening to explain the differences in international exports growth across Spanish regions. Unlike the predominance role of the intensive margin in country-level studies, our results show that both the intensive and the extensive margin can be very important components of regional exports growth. Moreover, the relevance of each component varies to a great extent across regions. Our findings suggest that policies implemented to promote exports should be designed at the regional level.

Suggested Citation

  • Uribe-Etxeberria, Asier Minondo & Requena Silvente , Francisco, 2012. "The intensive and extensive margins of trade: decomposing exports growth differences across Spanish Regions," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 23, pages 53-76.
  • Handle: RePEc:ris:invreg:0013
    as

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    References listed on IDEAS

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    1. Brenton, Paul & Newfarmer, Richard, 2007. "Watching more than the Discovery channel : export cycles and diversification in development," Policy Research Working Paper Series 4302, The World Bank.
    2. Besedes, Tibor & Prusa, Thomas J., 2011. "The role of extensive and intensive margins and export growth," Journal of Development Economics, Elsevier, vol. 96(2), pages 371-379, November.
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    5. Gabriel J Felbermayr & Wilhelm Kohler, 2014. "Exploring the Intensive and Extensive Margins of World Trade," World Scientific Book Chapters,in: European Economic Integration, WTO Membership, Immigration and Offshoring, chapter 4, pages 115-148 World Scientific Publishing Co. Pte. Ltd..
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    9. Juan de Lucio & Raúl Mínguez-Fuentes & Asier Minondo & Francisco Requena-Silvente, 2011. "The extensive and intensive margins of Spanish trade," International Review of Applied Economics, Taylor & Francis Journals, vol. 25(5), pages 615-631, January.
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    Cited by:

    1. A. Altuzarra & R. Bustillo & C. Rodríguez, 2016. "Understanding Export Market Success: Evidence from Manufacturing Firms," Open Economies Review, Springer, vol. 27(1), pages 161-181, February.
    2. Türkcan, Kemal, 2014. "Investigating the Role of Extensive Margin, Intensive Margin, Price and Quantity Components on Turkey’s Export Growth during 1998-2011," MPRA Paper 53292, University Library of Munich, Germany.
    3. María Josefa Garcia Grande & José María López Morales, 2015. "The Agri-Food trade in Spain: specialization and international competition," ERSA conference papers ersa15p450, European Regional Science Association.

    More about this item

    Keywords

    international exports; growth; intensive margin; extensive margin; regions; Spain;

    JEL classification:

    • F10 - International Economics - - Trade - - - General

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