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The extensive and intensive margins of exports of firms in developing and emerging countries

Paulo Regis

International Review of Economics & Finance, 2018, vol. 56, issue C, 39-49

Abstract: Using a dataset of over 86,000 firms from 179 surveys in developing and emerging countries, this paper presents evidence of the relationship between the margins of trade and productivity. Consistent with heterogeneous firm theoretical models, firms with high productivity have both greater likelihood of exporting (extensive margin) and higher export volume (intensive margin). Access to credit increases likelihood of entry to international markets; however, credit does not increase export volume. Size is a robust indicator of exporting status and the volume of exports. Firms with foreign ownership participation tend to be exporters, while those with state participation tend not to be.

Keywords: Margins of trade; Productivity; Access to finance; Developing and emerging countries (search for similar items in EconPapers)
JEL-codes: D24 F14 F10 (search for similar items in EconPapers)
Date: 2018
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