Bridging Trade Barriers: Evaluating Models of Multi-Product Exporters

Arbeitspapier

In this paper I investigate the impact of a decrease in trade costs on firms' decisions to export. The main contribution of this paper is to evaluate empirically the theoretical predictions of several models of multi-product exporters. The focus is on the firm export entry decision and the within firm adjustment regarding product scope and intensity. For identification I use a quasi-natural experiment, the introduction of the Öresund Bridge between southern Sweden and Denmark, to analyse the impact on firm behaviour. Using a difference-in-difference methodology, firms in the 'treated' municipality, Malmö, are compared to firms in more geographically distant Gothenburg and Stockholm ('controls'). For the 'treated' manufacturing firms a theoretically consistent positive effect is found for firm entry into exporting, aggregate firm trade flow and the number of products exported. The models of multi-product exporters evaluated do not provide a clear theoretical prediction regarding the impact on average trade value per product. In this paper, however, I find that around 70-80% of the increase in aggregate firm trade value is due to increases in the average trade value per product (the product intensive margin), while only 20-30% is due to increases in the number of products exported (the product extensive margin).

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Working Paper ; No. 2015:6

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Trade: General ; Trade Policy; International Trade Organizations ; Empirical Studies of Trade ; Economic Integration
• Thema: International Trade ; Multi-Product Firms ; Infrastructure ; Market Access ; Quasi-Natural Experiment ; Trade Costs

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Arnarson, Björn Thor
• Ereignis: Veröffentlichung
• (wer): Lund University, School of Economics and Management, Department of Economics
• (wo): Lund
• (wann): 2016

Weitere Informationen

• Handle: http://hdl.handle.net/10419/260144
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ