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Cities Export Specialization

Author Info

Listed author(s):
  • Jorge Díaz-Lanchas

    (Department of Economic Analysis: Economic Theory. Universidad Autónoma de Madrid and Lawrence R. Klein Institute/CEPREDE. 28049 Cantoblanco. Madrid)

  • Carlos Llano

    (Department of Economic Analysis: Economic Theory. Universidad Autónoma de Madrid and Lawrence R. Klein Institute/CEPREDE. 28049 Cantoblanco. Madrid)

  • Asier Minondo

    (Corresponding author. Deusto Business School, University of Deusto, Camino de Mundaiz 50, 20012 Donostia - San Sebastian (Spain). Research afiliate of Instituto Complutense de Estudios Internacionales.)

  • Francisco Requena

    (Department of Economic Structure, University of Valencia, Avda. dels Tarongers s/n, 46022 Valencia (Spain).)

Abstract

Do large and small cities exhibit different patterns of export specialization? Using highly disaggregated product-level trade data for Brazilian cities in year 2013, we find that more populated urban areas export proportionately more complex and skill-intensive goods than less populated urban areas. We also show that Brazilian urban areas that have increased more in population have also augmented more than proportionately the exports of complex and skill-intensive goods. Our empirical findings support recent models which argue that large cities attract more skilled workers and exhibit a wide range of capabilities, providing them a comparative advantage in skill-intensive and complex goods.

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File URL: ftp://147.156.210.157/RePEc/pdf/eec_1604.pdf
File Function: First version, 2016
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Paper provided by Department of Applied Economics II, Universidad de Valencia in its series Working Papers with number 1604.

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Date of creation: May 2016
Handle: RePEc:eec:wpaper:1604
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Keywords: urban areas; exports; complexity; skills; comparative advantage; Brazil;

Other versions of this item:

Find related papers by JEL classification:
  • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
  • F14 - International Economics - - Trade - - - Empirical Studies of Trade
  • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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  1. Costinot, Arnaud, 2009. "On the origins of comparative advantage," Journal of International Economics, Elsevier, vol. 77(2), pages 255-264, April.
  2. Arnaud Costinot, 2009. "An Elementary Theory of Comparative Advantage," Econometrica, Econometric Society, vol. 77(4), pages 1165-1192, 07.
  3. Donald R. Davis & Jonathan I. Dingel, 2014. "The Comparative Advantage of Cities," NBER Working Papers 20602, National Bureau of Economic Research, Inc.
  4. Chor, Davin, 2010. "Unpacking sources of comparative advantage: A quantitative approach," Journal of International Economics, Elsevier, vol. 82(2), pages 152-167, November.
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  7. Suzanne Kok & Bas ter Weel, 2014. "Cities, Tasks, And Skills," Journal of Regional Science, Wiley Blackwell, vol. 54(5), pages 856-892, November.
  8. Ricardo Hausmann & César Hidalgo, 2011. "The network structure of economic output," Journal of Economic Growth, Springer, vol. 16(4), pages 309-342, December.
  9. Edward L. Glaeser & Matthew G. Resseger, 2010. "The Complementarity Between Cities And Skills," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 221-244.
  10. Hausmann, Ricardo & Hidalgo, Cesar, 2014. "The Atlas of Economic Complexity: Mapping Paths to Prosperity," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262525429, July.
  11. Moura, Newton J. & Ribeiro, Marcelo B., 2006. "Zipf law for Brazilian cities," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 367(C), pages 441-448.
  12. John Romalis, 2004. "Factor Proportions and the Structure of Commodity Trade," American Economic Review, American Economic Association, vol. 94(1), pages 67-97, March.
  13. Trefler, Daniel, 1995. "The Case of the Missing Trade and Other Mysteries," American Economic Review, American Economic Association, vol. 85(5), pages 1029-1046, December.
  14. Bacolod, Marigee & Blum, Bernardo S. & Strange, William C., 2009. "Skills in the city," Journal of Urban Economics, Elsevier, vol. 65(2), pages 136-153, March.
  15. Xavier Gabaix, 1999. "Zipf's Law and the Growth of Cities," American Economic Review, American Economic Association, vol. 89(2), pages 129-132, May.
  16. Asier Minondo & Francisco Requena-Silvente, 2013. "Does complexity explain the structure of trade?," Canadian Journal of Economics, Canadian Economics Association, vol. 46(3), pages 928-955, August.
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