Exporters' characteristics and the margins of trade

Asier Minondo () and Francisco Requena-Silvente
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Francisco Requena-Silvente: Universidad de Valencia
Authors registered in the RePEc Author Service: Yurena Mendoza, Francisco Requena Silvente and Mariam Camarero

No 1117, Working Papers from Department of Applied Economics II, Universidad de Valencia

Abstract: This paper investigates the influence of exporting countries' characteristics on the number of exporters (extensive margin) and average exports value per firm (intensive margin). For that purpose, we use a new database compiled by the OECD and Eurostat in year 2005, which allows the calculation of trade margins in bilateral relationships involving a large number of exporting and importing countries. We find that there is almost a one to one relationship between exporters' GDP and the number of firms that participate in export markets. This proportionality remains when we decompose GDP into an employment component and a labor productivity component. Our results also show that exporters' labor productivity is positively linked with the intensive margin of exports. These findings are in line with trade models with product differentiation and heterogeneity in firm productivities, where the fixedcost of entering foreign markets is not uniform across firms.

Keywords: trade margins; gravity equation; trade costs; exporting firms; OECD (search for similar items in EconPapers)
JEL-codes: F12 F14 F23 (search for similar items in EconPapers)
Pages: 9 pages
Date: 2011-06
New Economics Papers: this item is included in nep-ene and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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http://repecsrv.uv.es/paper/RePEc/pdf/eec_1117.pdf First version, 2011 (application/pdf)

Related works:
Journal Article: Exporters' characteristics and the margins of trade (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:eec:wpaper:1117

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