Service regulations, input prices and export volumes: evidence from a panel of manufacturing firms

Monica Correa-Lopez and Rafael Doménech
Additional contact information
Rafael Doménech: BBVA RESEARCH AND UNIVERSITY OF VALENCIA

No 1707, Working Papers from Banco de España

Abstract: Using a panel of firm-level data from Spanish manufacturers, this study shows that better service regulation reduces the price of intermediate inputs paid by downstream firms. The beneficial cost effects of services reforms extend to both large and small-to-medium sized corporations (SMEs), but the former tend to enjoy greater gains. This feature also manifests itself in international markets. We identify an input cost channel through which service regulations affect the volume of exports of large manufacturers, while the evidence of such channel is weaker for SMEs. Our estimates indicate that, from 1991 till 2007, large firms increased their volume of exports by an average of 22% as a result of the direct input cost effect of services reforms, such that the firms that benefited the most typically belonged to industries more dependent on service inputs. Furthermore, convergence to the “best practice” regulatory framework in services would have raised exports at least by an additional 10%. We conclude that firm size is relevant for the connection between services reforms, intermediate input prices and export volumes

Keywords: service regulations; intermediate input prices; exports; firm size (search for similar items in EconPapers)
JEL-codes: F14 L11 L43 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2017-03
New Economics Papers: this item is included in nep-ind and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.bde.es/f/webbde/SES/Secciones/Publicaci ... /17/Fich/dt1707e.pdf First version, March 2017 (application/pdf)

Related works:
Journal Article: Service Regulations, Input Prices and Export Volumes: Evidence from a Panel of Manufacturing Firms (2019)
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:bde:wpaper:1707

Access Statistics for this paper

More papers in Working Papers from Banco de España Contact information at EDIRC.
Bibliographic data for series maintained by Ángel Rodríguez. Electronic Dissemination of Information Unit. Research Department. Banco de España ().