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Does a crisis increase the number of regular exporters?

Juan de Lucio (), Raúl Mínguez, Asier Minondo () and Francisco Requena Silvente ()

Applied Economics Letters, 2019, vol. 26, issue 20, 1700-1704

Abstract: The severe reduction in domestic demand between 2008 and 2013 in Spain led many firms to start exporting. We explore whether the increase in the new crisis-induced exporters led to a larger number of regular exporters once domestic demand returned to pre-crisis levels. Using an instrumental variable approach, we find that a 10% increase in new exporters led to a 9% increase in the number of new regular exporters. Since the economic crisis was not anticipated in Spain, our results establish a causal link between a fall in domestic demand and the emergence of new regular exporters.

Date: 2019
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DOI: 10.1080/13504851.2019.1591595

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