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Everything you always wanted to know about Latvia's service exporters (but were afraid to ask)

Author

Listed:
  • Konstantins Benkovskis

    (Bank of Latvia)

  • Olegs Tkacevs

    (Bank of Latvia)

Abstract

We provide a set of stylised facts about Latvia's firms engaging in service exports, using detailed firm-level datasets for 2006–2013. We show that the fraction of firms involved in service exports is small, but the numbers of service exporters are on average bigger than of non-exporters and goods exporters. Service exporters also appear more productive than non-exporters and goods exporters, although this finding may be attributed mainly to innovative, knowledge-based sectors of the economy. We have also shown tentative evidence in favour of self-selection of productive firms in service exporting which warrants further investigation. The study suggests that it might be more difficult to enter the pool of service exporters than goods exporters, since the service market has historically been highly regulated in Latvia's major trading partners, and efforts necessary to become a service exporter are larger than those needed to become a goods exporter.In a nutshell, the study enhances understanding of the relationship between trade behaviour and performance of service providers; likewise, it presents insight into how service and goods exporters compare. It complements the existing sparse set of empirical firm-level studies on service trade with evidence of a small open euro area economy.

Suggested Citation

  • Konstantins Benkovskis & Olegs Tkacevs, 2015. "Everything you always wanted to know about Latvia's service exporters (but were afraid to ask)," Working Papers 2015/06, Latvijas Banka.
  • Handle: RePEc:ltv:wpaper:201506
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    References listed on IDEAS

    as
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    Cited by:

    1. Konstantins Benkovskis, 2018. "Misallocation, productivity and fragmentation of production: the case of Latvia," Journal of Productivity Analysis, Springer, vol. 49(2), pages 187-206, June.

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    More about this item

    Keywords

    service trade; productivity; firm performance; micro data;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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