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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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    1. Kohler, Wilhelm & Smolka, Marcel, 2014. "Global sourcing and firm selection," Economics Letters, Elsevier, vol. 124(3), pages 411-415.
    2. Feng, Ling & Li, Zhiyuan & Swenson, Deborah L., 2016. "The connection between imported intermediate inputs and exports: Evidence from Chinese firms," Journal of International Economics, Elsevier, vol. 101(C), pages 86-101.
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    7. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
    8. Hospido, Laura & Moreno-Galbis, Eva, 2015. "The Spanish Productivity Puzzle in the Great Recession," CEPREMAP Working Papers (Docweb) 1510, CEPREMAP.
    9. Görg, Holger & Spaliara, Marina-Eliza, 2013. "Export market exit, financial pressure and the crisis," CEPR Discussion Papers 9599, C.E.P.R. Discussion Papers.
    10. Tim Schmidt-Eisenlohr & Ryan Monarch, 2015. "Learning and the Value of Relationships in International Trade," 2015 Meeting Papers 668, Society for Economic Dynamics.
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    12. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Oxford University Press, vol. 58(2), pages 277-297.
    13. Eppinger, Peter & Smolka, Marcel, 2015. "Firm Exports, Foreign Ownership, and the Global Financial Crisis," Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113039, Verein für Socialpolitik / German Economic Association.
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    15. Belke, Ansgar & Oeking, Anne & Setzer, Ralph, 2015. "Domestic demand, capacity constraints and exporting dynamics: Empirical evidence for vulnerable euro area countries," Economic Modelling, Elsevier, vol. 48(C), pages 315-325.
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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. 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.
    3. 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.
    4. 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.
    5. repec:ptu:bdpart:e201711 is not listed on IDEAS

    More about this item

    Keywords

    international trade; financial crisis; manufacturing; firm-level data; Spain;

    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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