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Export markets: substitutes, complements, or independent?

Author

Listed:
  • Mari Jose Aranguren
  • Juan De Lucio
  • Raúl Mínguez
  • Asier Minondo
  • Francisco Requena

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 Jose Aranguren & Juan De Lucio & Raúl Mínguez & Asier Minondo & Francisco Requena, 2021. "Export markets: substitutes, complements, or independent?," Applied Economics Letters, Taylor & Francis Journals, vol. 28(3), pages 165-169, February.
    • Handle: RePEc:taf:apeclt:v:28:y:2021:i:3:p:165-169
    DOI: 10.1080/13504851.2020.1739611
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    Cited by:

    1. 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).
    2. Asier Minondo, 2023. "Exporters' reaction to positive foreign demand shocks," Review of International Economics, Wiley Blackwell, vol. 31(4), pages 1271-1285, September.

    More about this item

    JEL classification:

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

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