Extensive and intensive trade margins: a state-by-state view
This paper examines a topic of increasing interest, the potential determinants of extensive (i.e., number of firms) and intensive (i.e., average exports per firm) trade margins, using state-level trade to 190 countries. In addition to distance and country size, other factors affecting trade costs and export demand are explored. In state-by-state regressions, these other factors exhibit more consistent and statistically significant effects on the extensive than on the intensive trade margin. One noteworthy finding is that U.S. foreign direct investment has a positive effect on both margins. In regressions using all state-level data simultaneously, some factors affect both margins, but not necessarily in the same way. For example, the impact of the communications infrastructure in the importing country affects the extensive margin positively and the intensive margin negatively. Finally, reasons for differences across states, such as state size and trade missions, are identified.
|Date of creation:||2012|
|Date of revision:|
|Contact details of provider:|| Postal: P.O. Box 442, St. Louis, MO 63166|
Web page: http://www.stlouisfed.org/
More information through EDIRC
|Order Information:|| Email: |
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.:
- James R. Markusen, 2010.
"Expansion of Trade at the Extensive Margin: A General Gains-from-Trade Result and Illustrative Examples,"
NBER Working Papers
15926, National Bureau of Economic Research, Inc.
- Markusen, James R., 2013. "Expansion of trade at the extensive margin: A general gains-from-trade result and illustrative examples," Journal of International Economics, Elsevier, vol. 89(1), pages 262-270.
- Markusen, James R., 2010. "Expansion of Trade at the Extensive Margin: A General Gains-from-Trade Result and Illustrative Examples," CEPR Discussion Papers 7802, C.E.P.R. Discussion Papers.
- Ines Buono & Guy Lalanne, 2010.
"The effect of the Uruguay Round on the intensive and extensive margins of trade,"
Temi di discussione (Economic working papers)
743, Bank of Italy, Economic Research and International Relations Area.
- Buono, Ines & Lalanne, Guy, 2012. "The effect of the Uruguay round on the intensive and extensive margins of trade," Journal of International Economics, Elsevier, vol. 86(2), pages 269-283.
- I. Buono & G. Lalanne, 2009. "The Effect of the Uruguay round on the Intensive and Extensive Margins of Trade," Documents de Travail de la DESE - Working Papers of the DESE g2009-15, Institut National de la Statistique et des Etudes Economiques, DESE.
- Hillberry, Russell & Hummels, David, 2008.
"Trade responses to geographic frictions: A decomposition using micro-data,"
European Economic Review,
Elsevier, vol. 52(3), pages 527-550, April.
- Russell Hillberry & David Hummels, 2005. "Trade Responses to Geographic Frictions: A Decomposition Using Micro-Data," NBER Working Papers 11339, National Bureau of Economic Research, Inc.
- Andrew J. Cassey, 2011.
"State Foreign Export Patterns,"
Southern Economic Journal,
Southern Economic Association, vol. 78(2), pages 308-329, October.
- Martina Lawless, 2010.
"Deconstructing gravity: trade costs and extensive and intensive margins,"
Canadian Journal of Economics,
Canadian Economics Association, vol. 43(4), pages 1149-1172, November.
- Lawless, Martina, 2008. "Deconstructing Gravity: Trade Costs and Extensive and Intensive Margins," Research Technical Papers 5/RT/08, Central Bank of Ireland.
- Lawless, Martina, 2008. "Deconstructing Gravity: Trade Costs and Extensive and Intensive Margins," MPRA Paper 10230, University Library of Munich, Germany.
- Antoine Berthou & Lionel Fontagné, 2008. "The Euro and the Intensive and Extensive Margins of Trade: Evidence from French Firm Level Data," Working Papers 2008-06, CEPII research center.
- Persson, Maria, 2010.
"Trade Facilitation and the Extensive Margin,"
Working Paper Series
828, Research Institute of Industrial Economics.
- Maria Persson, 2013. "Trade facilitation and the extensive margin," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 22(5), pages 658-693, August.
- Thomas Chaney, 2008. "Distorted Gravity: The Intensive and Extensive Margins of International Trade," American Economic Review, American Economic Association, vol. 98(4), pages 1707-21, September.
- Timothy J. Kehoe & Kim J. Ruhl, 2006.
"How Important is the New Goods Margin in International Trade?,"
2006 Meeting Papers
733, Society for Economic Dynamics.
- Timothy J. Kehoe & Kim J. Ruhl, 2013. "How Important Is the New Goods Margin in International Trade?," Journal of Political Economy, University of Chicago Press, vol. 121(2), pages 358 - 392.
- Timothy J. Kehoe & Kim J. Ruhl, 2009. "How important is the new goods margin in international trade?," Staff Report 324, Federal Reserve Bank of Minneapolis.
- Djankov, Simeon & Freund, Caroline & Pham, Cong S., 2006.
"Trading on time,"
Policy Research Working Paper Series
3909, The World Bank.
- Cletus C. Coughlin & Howard J. Wall, .
"Ethnic Networks and Trade: Intensive vs. Extensive Margins,"
11/02, University of Nottingham, GEP.
- Cletus C. Coughlin & Howard J. Wall, 2010. "Ethnic networks and trade: intensive vs. extensive margins," Working Papers 2010-016, Federal Reserve Bank of St. Louis.
- Coughlin, Cletus C & Wall, Howard J., 2011. "Ethnic networks and trade: Intensive vs. extensive margins," MPRA Paper 30758, University Library of Munich, Germany.
- Cletus C. Coughlin, 2010. "Measuring international trade policy: a primer on trade restrictiveness indices," Review, Federal Reserve Bank of St. Louis, issue Sep, pages 381-394.
When requesting a correction, please mention this item's handle: RePEc:fip:fedlwp:2012-002. 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: (Anna Xiao)
If references are entirely missing, you can add them using this form.