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Services versus goods trade: Are they the same?

  • Andrea Ariu

    ()

    (FNRS
    IRES, Universite catholique de Louvain, Belgium)

In this paper, we present for the first time a qualitative and quantitative comparison between trade in services and trade in goods at firm level for the same country. We focus first on static features of trade such as participation rates, firms’ characteristics, heterogeneity, concentration and trade variation. Secondly, we explore dynamic aspects focusing on entry, exit, firm survival and growth strategy. On the one hand, our results reveal qualitative similarities between services and goods trade at firm level, suggesting that heterogeneous models of trade can be a good starting point for the analysis of trade in services. On the other hand, we highlight dramatic differences in quantitative terms and in some key characteristics that pose new challenges to current trade models.

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File URL: https://www.nbb.be/doc/oc/repec/reswpp/wp237en.pdf
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Paper provided by National Bank of Belgium in its series Working Paper Research with number 237.

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Length: 35 pages
Date of creation: Dec 2012
Date of revision:
Handle: RePEc:nbb:reswpp:201212-237
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