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International trade in services: firm-level evidence for Portugal

João Amador (), Sonia Cabral () and Birgitte Ringstad ()
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Birgitte Ringstad: Nova School of Business and Economics

Portuguese Economic Journal, 2019, vol. 18, issue 3, No 2, 127-163

Abstract: Abstract This paper adds to the existing firm-level evidence on international trade in non-tourism services, using a new Portuguese database merged with balance-sheet data. In accordance with the literature, we find that a small number of firms that both export and import services (two-way traders) with diversified service and geographical portfolios account for a substantial share of trade flows. Compared with one-way traders, two-way traders are larger, older, more productive, more profitable and have a higher share of foreign equity. Considering all margins of firm-level trade and controlling for firms’ characteristics, the intensive margins of exports and imports of services are positively related to both productivity and profitability. Regarding the extensive margins, the number of services imported is also positively associated with firms’ performance.

Keywords: International trade; Services; Trade margins; Firm-level data (search for similar items in EconPapers)
JEL-codes: F1 F14 L25 (search for similar items in EconPapers)
Date: 2019
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DOI: 10.1007/s10258-019-00161-4

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