Export dynamics and sales at home

Nicolas Berman (), Antoine Berthou and Jérôme Héricourt

No 1720, Working Paper Series from European Central Bank

Abstract: Using a French firm-level database that combines balance-sheet and product-destination-specific export information over the period 1995-2001, we study the interconnections between exports and domestic sales. We identify exogenous shocks that affect the firms' demand on foreign markets to instrument yearly variations in exports. We use alternatively as instruments product-destination specific imports or tariffs changes, and large foreign shocks such as financial crises or civil wars. Our results show that exogenous variations in foreign sales are positively associated with domestic sales, even after controlling for changes in domestic demand. A 10% exogenous increase in exports generates a 1 to 3% increase in domestic sales in the short-term. This result is robust to various estimation techniques, instruments, controls, and sub-samples. We provide empirical evidence suggesting that this positive effect of exogenous changes in exports on domestic sales is related to a relaxation of short-run liquidity constraints. JEL Classification: F10, F44, L20

Keywords: demand shocks; domestic sales; export dynamics; liquidity; markets (search for similar items in EconPapers)
Date: 2014-08
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.ecb.europa.eu//pub/pdf/scpwps/ecbwp1720.pdf (application/pdf)

Related works:
Journal Article: Export dynamics and sales at home (2015)
Working Paper: Export dynamics and sales at home (2015)
Working Paper: Export dynamics and sales at home (2015)
Working Paper: Export dynamics and sales at home (2012)
Working Paper: Export dynamics and sales at home (2012)
Working Paper: Export dynamics and sales at home (2012)
Working Paper: Export Dynamics and Sales at Home (2011)
Working Paper: Export dynamics and sales at home (2011)
Working Paper: Export dynamics and sales at home (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbwps:20141720

Access Statistics for this paper

More papers in Working Paper Series from European Central Bank 60640 Frankfurt am Main, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Official Publications ().