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Coping with the Crisis: Recent Evolution in Danish Firms' International Trade Involvement, 2000-2010

Author

Listed:
  • Kaleb Girma Abreha

    (Department of Economics and Business, Aarhus University)

  • Valérie Smeets

  • Frédéric Warzynski

    (Department of Economics and Business, Aarhus University)

Abstract

Using a highly disaggregated firm-product-destination level data from Denmark, we document salient features of Danish international production in the recent decade. These include systematic variation in export participation of firms across industries, positive correlation between the scope (number of products exported and markets served) and scale of exporting activities, considerable dominance of multi-product and multi-destination firms, existence of carry-along trade, the prevalence of core and peripheral products in exports, a small role of economy-wide entry and exit of firms and products, and a sizable role of firm-level adding and dropping of products and product-destination combinations as a margin of trade adjustment. Finally, we show that firms responded to the latest economic shock mainly by adjusting the scale of exports and imports. At the same time, changing their products and productdestination combinations helped them to mitigate the negative effects of the shock.

Suggested Citation

  • Kaleb Girma Abreha & Valérie Smeets & Frédéric Warzynski, 2013. "Coping with the Crisis: Recent Evolution in Danish Firms' International Trade Involvement, 2000-2010," Economics Working Papers 2013-15, Department of Economics and Business Economics, Aarhus University.
    • Handle: RePEc:aah:aarhec:2013-15
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    References listed on IDEAS

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    1. Roberto Alvarez & Ricardo A. López, 2005. "Exporting and performance: evidence from Chilean plants," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 38(4), pages 1384-1400, November.
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    Citations

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    Cited by:

    1. Eckel, Carsten & Riezman, Raymond, 2020. "CATs and DOGs," Journal of International Economics, Elsevier, vol. 126(C).
    2. Benjamin Friedrich, 2015. "Trade Shocks, Firm Hierarchies and Wage Inequality," Economics Working Papers 2015-26, Department of Economics and Business Economics, Aarhus University.
    3. Aksel Erbahar, 2020. "Two worlds apart? Export demand shocks and domestic sales," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 156(2), pages 313-342, May.
    4. Joachim Wagner, 2016. "A survey of empirical studies using transaction level data on exports and imports," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 152(1), pages 215-225, February.
    5. Joachim Wagner, 2017. "Intra-good trade in Germany: a first look at the evidence," Applied Economics, Taylor & Francis Journals, vol. 49(57), pages 5753-5761, December.
    6. Lawless, Martina & Siedschlag, Iulia & Studnicka, Zuzanna, 2017. "Expanding and diversifying the manufactured exports of Irish-owned enterprises," Research Series, Economic and Social Research Institute (ESRI), number BKMNEXT335.

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    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F6 - International Economics - - Economic Impacts of Globalization
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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