Venting out: exports during a domestic slump
Miguel Almunia,
Pol Antras,
David López-Rodríguez () and
Eduardo Morales ()
Additional contact information
David López-Rodríguez: Banco de España
Eduardo Morales: Princeton University, NBER and CEPR
No 1844, Working Papers from Banco de España
Abstract:
We exploit plausibly exogenous geographical variation in the reduction in domestic demand caused by the Great Recession in Spain to document the existence of a robust, within-firm negative causal relationship between demand-driven changes in domestic sales and export flows. Spanish manufacturing firms whose domestic sales were reduced by more during the crisis observed a larger increase in their export flows, even after controlling for firms’ supply determinants (such as labor costs). This negative relationship between demand-driven changes in domestic sales and changes in export flows illustrates the capacity of export markets to counteract the negative impact of local demand shocks. We rationalize our findings through a standard heterogeneous-firm model of exporting expanded to allow for non-constant marginal costs of production. Using a structurally estimated version of this model, we conclude that the firm-level responses to the slump in domestic demand in Spain could well have accounted for around one-half of the spectacular increase in Spanish goods exports (the so-called “Spanish export miracle”) over the period 2009-13.
Keywords: vent-for-surplus; exports; domestic slump; increasing marginal cost (search for similar items in EconPapers)
JEL-codes: F12 F14 F62 (search for similar items in EconPapers)
Pages: 90 pages
Date: 2018-12
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (51)
Downloads: (external link)
https://www.bde.es/f/webbde/SES/Secciones/Publicac ... 18/Files/dt1844e.pdf First version, December 2018 (application/pdf)
Related works:
Journal Article: Venting Out: Exports during a Domestic Slump (2021) 
Working Paper: Venting Out: Exports During a Domestic Slump (2021) 
Working Paper: Venting Out: Exports During a Domestic Slump (2018) 
Working Paper: Venting Out: Exports During a Domestic Slump (2018) 
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:1844
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 ().