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Trading firms in the Spanish services sector

  • Minondo, Asier

In this study, I analyze the characteristics of trading firms in the Spanish service sector. I reveal that half of the service firms in Spain operate only in their local markets, whereas one-third of the examined service firms trade with non-local areas of Spain, and fewer than 20% of Spanish service firms trade with other nations. Similar to those in the manufacturing sector, trading firms in the service sector exhibit premia relative to non-traders with respect to size, labor productivity and average wages. Larger premia are observed for firms that trade with more distant markets and for firms that participate in bidirectional trade. Service firms that trade with non-local areas of Spain also exhibit similar premia relative to firms that trade only in their regional markets. I demonstrate that compared with non-trading firms, firms that engage in trade with foreign countries are more productive even before they have commenced their trading activities. However, I do not find that the initiation of trade with foreign nations by trading firms is followed by improvements in the productivity of these firms relative to non-trading firms.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 43224.

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Date of creation: 11 Dec 2012
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Handle: RePEc:pra:mprapa:43224
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  1. Juan Manez & Maria Rochina & Juan Sanchis, 2004. "The decision to export: a panel data analysis for Spanish manufacturing," Applied Economics Letters, Taylor & Francis Journals, vol. 11(11), pages 669-673.
  2. Joze P.Damijan & Stefanie A. Haller & Ville Kaitila & Mika Malirante & Emmanuel Milet & Matija Rojec, 2012. "The performance of trading firms in the services sectors – Comparable evidence from four EU countries," LICOS Discussion Papers 31712, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  3. Andrea ARIU, 2013. "Services versus Goods Trade: Are They the Same?," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2013015, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  4. Francois, Joseph & Hoekman, Bernard, 2009. "Services Trade and Policy," CEPR Discussion Papers 7616, C.E.P.R. Discussion Papers.
  5. Thomas J. Holmes & John J. Stevens, 2010. "Exports, Borders, Distance, and Plant Size," NBER Working Papers 16046, National Bureau of Economic Research, Inc.
  6. Ingo Borchert & Batshur Gootiiz & Aaditya Mattoo, 2014. "Policy Barriers to International Trade in Services: Evidence from a New Database," World Bank Economic Review, World Bank Group, vol. 28(1), pages 162-188.
  7. Keith Walsh, 2006. "Trade in Services: Does Gravity Hold? A Gravity Model Approach to Estimating Barriers to Services Trade," The Institute for International Integration Studies Discussion Paper Series iiisdp183, IIIS.
  8. Haller, Stefanie A. & Damijan, Jože & Kaitila, Ville & Kostevc, Črt & Maliranta, Mika & Milet, Emmanuel & Mirza, Daniel & Rojec, Matija, 2012. "A portrait of trading firms in the services sectors – Comparable evidence from four EU countries," Discussion Papers 1283, The Research Institute of the Finnish Economy.
  9. Alexander Eickelpasch & Alexander Vogel, 2009. "Determinants of Export Behaviour of German Business Services Companies," Discussion Papers of DIW Berlin 876, DIW Berlin, German Institute for Economic Research.
  10. Minondo, Asier, 2012. "The relationship between export status and productivity in services: A firm-level analysis for Spain," MPRA Paper 43225, University Library of Munich, Germany.
  11. Campa, Jose Manuel, 2004. "Exchange rates and trade: How important is hysteresis in trade?," European Economic Review, Elsevier, vol. 48(3), pages 527-548, June.
  12. Breinlich, Holger & Criscuolo, Chiara, 2011. "International trade in services: A portrait of importers and exporters," Journal of International Economics, Elsevier, vol. 84(2), pages 188-206, July.
  13. Henk Kox, 2010. "Exports and productivity selection effects for Dutch firms," CPB Discussion Paper 143, CPB Netherlands Bureau for Economic Policy Analysis.
  14. José C. Fariñas & Ana Martín-Marcos, 2007. "Exporting and Economic Performance: Firm-level Evidence of Spanish Manufacturing," The World Economy, Wiley Blackwell, vol. 30(4), pages 618-646, 04.
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