Exporters' characteristics and the margins of trade
This paper investigates the influence of exporting countries' characteristics on the number of exporters (extensive margin) and average exports value per firm (intensive margin). For that purpose, we use a new database compiled by the OECD and Eurostat in year 2005, which allows the calculation of trade margins in bilateral relationships involving a large number of exporting and importing countries. We find that there is almost a one to one relationship between exporters' GDP and the number of firms that participate in export markets. This proportionality remains when we decompose GDP into an employment component and a labor productivity component. Our results also show that exporters' labor productivity is positively linked with the intensive margin of exports. These findings are in line with trade models with product differentiation and heterogeneity in firm productivities, where the fixedcost of entering foreign markets is not uniform across firms.
|Date of creation:||Jun 2011|
|Date of revision:|
|Contact details of provider:|| Postal: Edifici Departamental Oriental, Campus dels Tarongers, Avda. dels Tarongers, S/N (4P15), 46022 - València|
Phone: 963 82 83 49
Fax: 963 82 83 54
Web page: http://www.estructuraeconomica.es
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jing Li & Junsoo Lee, 2010.
"ADL tests for threshold cointegration,"
Journal of Time Series Analysis,
Wiley Blackwell, vol. 31(4), pages 241-254, 07.
- Péguin-Feissolle, Anne & Strikholm, Birgit & Teräsvirta, Timo, 2007.
"Testing the Granger noncausality hypothesis in stationary nonlinear models of unknown functional form,"
SSE/EFI Working Paper Series in Economics and Finance
672, Stockholm School of Economics, revised 18 Jan 2012.
- Anne Péguin-Feissolle & Birgit Strikholm & Timo Teräsvirta, 2008. "Testing the Granger noncausality hypothesis in stationary nonlinear models of unknown functional form," CREATES Research Papers 2008-19, Department of Economics and Business Economics, Aarhus University.
When requesting a correction, please mention this item's handle: RePEc:eec:wpaper:1117. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Silviano Esteve)
If references are entirely missing, you can add them using this form.