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Trading firms in the Spanish services sector

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  • Minondo, Asier

Abstract

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.

Suggested Citation

  • Minondo, Asier, 2012. "Trading firms in the Spanish services sector," MPRA Paper 43224, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:43224
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    References listed on IDEAS

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    10. Asier Minondo, 2014. "The Relationship Between Export Status And Productivity In Services: A Firm-Level Analysis For Spain," Bulletin of Economic Research, Wiley Blackwell, vol. 66(S1), pages 138-146, December.
    11. 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.
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    Cited by:

    1. Pedro J. Hernández, 2020. "Reassessing the link between firm size and exports," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 10(2), pages 207-223, June.
    2. Minondo, Asier, 2015. "The geography, variety and dynamics of service exports in Spain: a firm-level analysis," MPRA Paper 66993, University Library of Munich, Germany.
    3. Juan Lucio & Raúl Mínguez & Asier Minondo & Francisco Requena, 2017. "The granularity of Spanish exports," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 8(3), pages 225-259, August.
    4. Álvarez López, M.ª Elisa & Vega Crespo, Josefa, 2017. "La fortaleza competitiva de la economía española/The Competitive Strength of the Spanish Economy," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 35, pages 7-34, Enero.
    5. N. Nergiz Dincer & Ayça Tekin-Koru, 2016. "A league of their own: services exporters -- a developing country perspective," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 25(5), pages 615-635, August.
    6. Dincer, Nergiz & Tekin-Koru, Ayca, 2014. "A League of Their Own: Services Exporters within Goods Exporters," MPRA Paper 53294, University Library of Munich, Germany.

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    More about this item

    Keywords

    exports; services; firm-level evidence; Spain; productivity; heterogeneity;

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F19 - International Economics - - Trade - - - Other

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