Exporters' characteristics and the margins of trade
DOI:
https://doi.org/10.17811/ebl.1.2.2012.10-15Abstract
This paper investigates the influence of exporting countries' characteristics on the number of exporters (extensive margin) and average exports value per firm (intensive margin). For that purpose, we use a new database compiled by the OECD and Eurostat in year 2005, which allows the calculation of trade margins in bilateral relationships involving a large number of exporting and importing countries. We find that there is almost a one to one relationship between exporters' GDP and the number of firms that participate in export markets. This proportionality remains when we decompose GDP into an employment component and a labor productivity component. Our results also show that exporters' labor productivity is positively linked with the intensive margin of exports.
References
Anderson, J.E. and Van Wincoop, E. (2003) Gravity with gravitas: a solution to the border puzzle, American Economic Review, 93(1), 170-192.
Araújo, S. and Gonnard, E. (2011) Selling to foreign markets: a portrait of OECD exporters, OECD Statisticals Brief, 16.
Arkolakis, C. (2010) Market penetration costs and the new consumers margin in international trade, Journal of Political Economy, 118(6), 1151-1199.
Bernard, A.B. and Jensen, J.B. (1995) Exporters, jobs and wages in U.S. manufacturing, 1976-87, Brookings Papers on Economic Activity, 67-119.
Bernard, A.B., Jensen, J.B., Redding, S.J. and Schott, P.K. (2007) Firms in international trade, Journal of Economic Perspectives, 21(3), 105-130.
Chaney, T. (2008) Distorted gravity: the intensive and extensive margins of international trade, American Economic Review, 98(4), 1707-1721.
Head, K., Mayer, T. and Ries, J. (2010) The erosion of colonial trade linkages after independence, Journal of International Economics, 81(1), 1-14.
Heston, A., Summers, R. and Aten, B. (2011) Penn World Table Version 7.0, Center for International Comparisons of Production, Income and Prices at the University of Pennsylvania.
Hummels, D. and Klenow, P.J. (2005) The variety and quality of a nation’s exports, American Economic Review, 95(3), 704-723
Krugman, P.R. (1981) Intraindustry specialization and the gains from trade, Journal of Political Economy, 89(5), 959-973.
Lawless, M. (2010) Deconstructing gravity: trade costs and the extensive and intensive margins of trade, Canadian Journal of Economics, 43(4), 1149-1172.
Melitz, M.J. (2003) The impact of trade on intra-industry reallocations and aggregate industry productivity, Econometrica, 71(6), 1695-1725.
Nitsch, V. (2000) National borders and international trade: evidence from the European Union, Canadian Journal of Economics, 33(4), 1091-1105.
Downloads
Published
How to Cite
Issue
Section
License
The works published in this journal are subject to the following terms:
1. Oviedo University Press (the publisher) retains the property rights (copyright) of published works, and encourages and enables the reuse of the same under the license specified in paragraph 2.
© Ediuno. Ediciones de la Universidad de Oviedo / Oviedo University Press
2. The works are published in the online edition of the journal under a Creative Commons Attribution-Non Commercial-Non Derives 3.0 Spain (legal text). You can copy, use, distribute, transmit and publicly display, provided that: i) you cite the author and the original source of publication (journal, publisher and URL of the work), ii) they are not used for commercial purposes, iii) mentions the existence and specifications of this license.
3. Conditions of self-archiving. The author can archive the post-print version of the article (publisher’s version) on the author’s personal website and/or on the web of the institution where he belong, including a link to the page of the journal and putting the way of citation of the work. Economics and Business Letters and its URL https://reunido.uniovi.es/index.php/EBL/index are the only authorized source for correctly giving the reference of the publisher’s version in every mention of the article.