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Trading activities, productivity and markups: evidence for spanish manufacturing

Author

Listed:
  • Juan A. Mán~ez Castillejo

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

  • M. Consuelo Mínguez Bosque

    (IVIE, Carrer de la Guàrdia Civil 22, 46020 València (Spain).)

  • Mari´a E. Rochina-Barrachina

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

  • Juan A. Sanchis Llopis

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

Abstract

This work analyses the firms’ internationalization strategies of importing intermediates and exporting output, and the potential rewards of these activities in terms of total factor productivity (TFP), as a proxy for marginal costs, and markups. It further deepens into the study of the relationship between internationalization strategies and markups by disentangling whether it operates through affecting firms’ marginal costs and/or firms’ prices. The panel database employed in this paper is the Spanish Survey on Business Strategies (ESEE) for the period 2006- 2014. Results in the paper distinguish between SMEs and large firms and indicate that there is high persistence in the performance of these activities and in firms’ TFP and markups. In addition, the internationalization strategies are especially relevant for SMEs, as for this group we obtain rewards of the two activities in terms of both TFP and markups. Furthermore, we also find that these strategies allow SMEs to charge higher output prices.

Suggested Citation

  • Juan A. Mán~ez Castillejo & M. Consuelo Mínguez Bosque & Mari´a E. Rochina-Barrachina & Juan A. Sanchis Llopis, 2019. "Trading activities, productivity and markups: evidence for spanish manufacturing," Working Papers 1905, Department of Applied Economics II, Universidad de Valencia.
    • Handle: RePEc:eec:wpaper:1905
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    Citations

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    Cited by:

    1. Andres Mauricio Gomez-Sanchez & Juan A. Máñez Castillejo & Juan Alberto Sanchis-Llopis, 2024. "On the Direct and Indirect Effects of ICT on SMEs Export Performance: Evidence from Colombian Manufacturing," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 6178-6200, June.
    2. Segundo Camino‐Mogro & Paul Carrillo‐Maldonado, 2023. "Do imports of intermediate inputs generate higher productivity? Evidence from Ecuadorian manufacturing firms," The World Economy, Wiley Blackwell, vol. 46(5), pages 1471-1521, May.
    3. Andrés Mauricio Gómez‐Sánchez & Juan A. Mañez & Juan A. Sanchis‐Llopis, 2022. "Are importing and exporting complements or substitutes in an emerging economy? The case of Colombia," Review of International Economics, Wiley Blackwell, vol. 30(3), pages 819-835, August.
    4. Juan A. Sanchis Llopis & Silviano Juan A. Mañez Castillejo & Andrés Mauricio Gómez-Sánchez, 2022. "The dynamic linkages between exporting and importing in Colombian manufacturing," Working Papers 2203, Department of Applied Economics II, Universidad de Valencia.
    5. Mercè Sala-Ríos & Mariona Farré-Perdiguer & Teresa Torres-Solé, 2020. "Exporting and Firms’ Performance—What about Cooperatives? Evidence from Spain," Sustainability, MDPI, vol. 12(20), pages 1-22, October.
    6. Casagrande, Dieison & Hidalgo, Álvaro & Feistel, Paulo, 2024. "Exports, productivity and capital intensity: Evidence for Brazilian firms," Structural Change and Economic Dynamics, Elsevier, vol. 70(C), pages 279-301.
    7. Reddy, Ketan & Sasidharan, Subash, 2024. "Global value chains, productivity and markup: Evidence from India," International Review of Economics & Finance, Elsevier, vol. 89(PB), pages 250-271.
    8. Leonidas C. Leonidou & Dayananda Palihawadana & Bilge Aykol & Frode Nilssen & Paul Christodoulides, 2025. "Dynamic Capability Drivers and Performance Outcomes of Strategic Import Planning: The Moderating Role of Organizational Resources and Market Factors," Management International Review, Springer, vol. 65(4), pages 637-672, August.
    9. Dolores Añon Higón & Ionnanis Bournakis, 2024. "Global Value Chains (GVCs) participation and Markups," Working Papers 2403, Department of Applied Economics II, Universidad de Valencia.

    More about this item

    Keywords

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    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F61 - International Economics - - Economic Impacts of Globalization - - - Microeconomic Impacts
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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