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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.

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

    1. Jože Damijan & Stefanie A. Haller & Ville Kaitila & Črt Kostevc & Mika Maliranta & Emmanuel Milet & Daniel Mirza & Matija Rojec, 2015. "The Performance of Trading Firms in the Services Sectors – Comparable Evidence from Four EU Countries," The World Economy, Wiley Blackwell, vol. 38(12), pages 1809-1849, December.
    2. 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.
    3. 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.
    4. Andrea Ariu, 2012. "Services versus goods trade: Are they the same?," Working Paper Research 237, National Bank of Belgium.
    5. Joseph Francois & Bernard Hoekman, 2010. "Services Trade and Policy," Journal of Economic Literature, American Economic Association, vol. 48(3), pages 642-692, September.
    6. Henk Kox & Hugo Rojas-Romagosa, 2010. "Exports and Productivity Selection Effects for Dutch Firms," De Economist, Springer, vol. 158(3), pages 295-322, September.
    7. Holmes, Thomas J. & Stevens, John J., 2012. "Exports, borders, distance, and plant size," Journal of International Economics, Elsevier, vol. 88(1), pages 91-103.
    8. 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.
    9. Alexander Eickelpasch & Alexander Vogel, 2009. "Determinants of Export Behaviour of German Business Services Companies," Working Paper Series in Economics 123, University of Lüneburg, Institute of Economics.
    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.
    12. 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.
    13. 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, April.
    14. Haller, Stefanie A. & Damijan, Joe & 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.
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    Cited by:

    1. 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.
    2. repec:spr:series:v:8:y:2017:i:3:d:10.1007_s13209-017-0157-x is not listed on IDEAS
    3. 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 Economía Aplicada, Estudios de Economía Aplicada, vol. 35, pages 7-34, Enero.
    4. Dincer, Nergiz & Tekin-Koru, Ayça, 2015. "A League of Their Own: Services Exporters –A Developing Country Perspective-," MPRA Paper 64363, University Library of Munich, Germany.
    5. Dincer, Nergiz & Tekin-Koru, Ayca, 2014. "A League of Their Own: Services Exporters within Goods Exporters," MPRA Paper 53294, University Library of Munich, Germany.
    6. 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.

    More about this item


    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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