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Trade Effects Of A Negative Export Shock On Direct Exporters And Wholesalers

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  • Mathias Juust

Abstract

This paper examines the effects on the exports of Estonian firms of the Russian export shock of 2014, which was a multifaceted negative market-wide income shock. The dataset covers all the Estonian exporters that exported to Russia in 2013 and the empirical analysis uses a difference-in-difference method in combination with the coarsened exact matching method to account for heterogeneities between the treatment and control groups. I find that the wholesalers affected were able to show better export performance after the shock than direct exporters were. The trade performance after the shock was lower for both wholesalers and direct exporters that had lower initial productivity levels.

Suggested Citation

  • Mathias Juust, 2021. "Trade Effects Of A Negative Export Shock On Direct Exporters And Wholesalers," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 133, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    • Handle: RePEc:mtk:febawb:133
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    Keywords

    export shock; firm-level trade effects; trade effects; trade policy;
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