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Trade Crisis? What Trade Crisis?

Author

Listed:
  • Kristian Behrens

    (Université du Québec à Montrëal CIRPEE, and CEPR)

  • Gregory Corcos

    (Norwegian School of Economics and Business Administration)

  • Giordano Mion

    (London School of Economics, CEP, CEPR, and SERC)

Abstract

We investigate the 2008–2009 trade collapse using microdata from a small open economy, Belgium. Belgian exports and imports mostly fell because of smaller quantities sold and unit prices charged rather than fewer firms, trading partners, and products being involved in trade. Our difference-in-difference results point to a fall in the demand for tradables as the main driver of the collapse. Finance and involvement in global value chains played a minor role. Firm-level exports-to-turnover and imports-to-intermediates ratios reveal a comparable collapse of domestic and cross-border operations. Overall, our results reject a crisis of cross-border trade per se. © 2013 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Suggested Citation

  • Kristian Behrens & Gregory Corcos & Giordano Mion, 2013. "Trade Crisis? What Trade Crisis?," The Review of Economics and Statistics, MIT Press, vol. 95(2), pages 702-709, May.
  • Handle: RePEc:tpr:restat:v:95:y:2013:i:2:p:702-709
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    References listed on IDEAS

    as
    1. Kristian Behrens & Gregory Corcos & Giordano Mion, 2013. "Trade Crisis? What Trade Crisis?," The Review of Economics and Statistics, MIT Press, vol. 95(2), pages 702-709, May.
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    More about this item

    Keywords

    2008–2009 trade collapse; Belgian microdata; margins of trade; difference-indifference;

    JEL classification:

    • F01 - International Economics - - General - - - Global Outlook
    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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