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The Great Trade Collapse and the Spanish Export Miracle: Firm-level Evidence from the Crisis

Author

Listed:
  • Peter S. Eppinger

    (University of Tübingen)

  • Nicole Meythaler

    (Institute for Applied Economic Research (IAW) at the University of Tübingen)

  • Marc-Manuel Sindlinger

    (University of Bonn)

  • Marcel Smolka

    () (Department of Economics and Business Economics, Aarhus University, Denmark and IZA)

Abstract

We provide novel evidence on the micro-structure of international trade during the 2008 financial crisis and subsequent global recession exploring a rich firm-level data set from Spain. The analysis is motivated by the surprisingly strong export performance of Spain in the aftermath of the great trade collapse (dubbed by some as the “Spanish export miracle”). The focus of our analysis is on changes at the extensive and intensive firm-level margins of trade, as well as on performance differences (jobs, productivity, and firm survival) across firms that differ in their export status. We find no adverse effects of the financial crisis on foreign market entry or exit, but a considerable increase in the export intensity of firms after the financial crisis. Moreover, we find that those firms that entered the crisis as exporters (and continued exporting throughout the crisis years) were more resilient to the crisis than those firms that restricted their sales to the domestic market. Finally, in contrast to exporters, non-exporters experienced a significant deterioration in their total factor productivity, which led to an overall decline in the productivity of a significant number of industries in Spanish manufacturing.

Suggested Citation

  • Peter S. Eppinger & Nicole Meythaler & Marc-Manuel Sindlinger & Marcel Smolka, 2015. "The Great Trade Collapse and the Spanish Export Miracle: Firm-level Evidence from the Crisis," Economics Working Papers 2015-10, Department of Economics and Business Economics, Aarhus University.
  • Handle: RePEc:aah:aarhec:2015-10
    as

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    References listed on IDEAS

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    Cited by:

    1. Jeronimo Carballo & Kyle Handley & Nuno Limão, 2018. "Economic and Policy Uncertainty: Export Dynamics and the Value of Agreements," NBER Working Papers 24368, National Bureau of Economic Research, Inc.
    2. Almunia, Miguel & Antràs, Pol & Lopez-Rodriguez, David & Morales, Eduardo, 2018. "Venting Out: Exports During a Domestic Slump," CEPR Discussion Papers 13380, C.E.P.R. Discussion Papers.
    3. De Lucio, Juan & Mínguez, Raúl & Minondo, Asier & Requena, Francisco, 2017. "Los márgenes del crecimiento de las exportaciones españolas antes y después de la Gran Recesión /Spanish Trade Margins before and after the Great Recession," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 35, pages 43-62, Enero.
    4. Carlos Melo Gouveia & Cristina Manteu & Sónia Cabral, 2020. "The granularity of Portuguese firm-level exports," Economic Bulletin and Financial Stability Report Articles and Banco de Portugal Economic Studies, Banco de Portugal, Economics and Research Department.
    5. Álvarez López, M.ª Elisa & Vega Crespo, Josefa, 2017. "La fortaleza competitiva de la economía española/The Competitive Strength of the Spanish Economy," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 35, pages 7-34, Enero.
    6. Juan A. Máñez Castillejo & Oscar Vicente-Chirivella, 2019. "Exports of Spanish manufacturing firms and financial constraints," Working Papers 1921, Department of Applied Economics II, Universidad de Valencia.
    7. Ballestar, María Teresa & Díaz-Chao, Ángel & Sainz, Jorge & Torrent-Sellens, Joan, 2020. "Knowledge, robots and productivity in SMEs: Explaining the second digital wave," Journal of Business Research, Elsevier, vol. 108(C), pages 119-131.
    8. João Amador & Luca David Opromolla, 2017. "Trade Margins and Cohorts of Traders in Portugal," Economic Bulletin and Financial Stability Report Articles and Banco de Portugal Economic Studies, Banco de Portugal, Economics and Research Department.

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    More about this item

    Keywords

    international trade; financial crisis; manufacturing; firm-level data; Spain;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • G01 - Financial Economics - - General - - - Financial Crises
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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