The role of extensive and intensive margins and export growth

Besedeš, Tibor; Prusa, Thomas J.

doi:10.1016/j.jdeveco.2010.08.013

Cited by 287 publications

(196 citation statements)

References 22 publications

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“…Early articles by Besedeš and Prusa (2006a,b) showed that the median duration of US imports was merely one year in their benchmark 7-digit (US Tariff Schedule) data. Later articles, including Hess and Persson (2011b), Besedeš and Prusa (2010), Besedeš (2008Besedeš ( , 2011, Nitsch (2009), Fugazza and Molina (2009) and Brenton et al (2009) have confirmed similar short durations for other countries' trade. For a detailed overview of these studies, see Hess and Persson (2011b).…”

Section: Introductionmentioning

confidence: 70%

“…Second, data at a relatively high level of aggregation yields more conservative estimates, because if we do find short trade spells using relatively aggregated data, we can be more confident that this mirrors an economically significant phenomenon. Besedeš and Prusa (2010) use the same type of data in their analysis.…”

Section: Data and Descriptive Statisticsmentioning

confidence: 99%

“…Brenton et al (2009 cover a slightly longer time period -1985 -2005 -but do not use it to draw any conclusions regarding the evolution of trade duration over calender time. Besedeš and Prusa (2010), finally, have data for a fairly long time period, 1975-2003, but do not analyze how the duration of trade changes over this period.…”

Section: Introductionmentioning

confidence: 99%

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Exploring the Long-Term Evolution of Trade Survival

Heß

Persson

2011

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. We find that short duration is a persistent characteristic of trade throughout the extended time period that we study: in general only 40 percent of trade flows survive the first year of service, and this share has not changed much since the 1960s. However, this observed constancy is the result of two underlying trends that work in opposite directions. On the one hand, positive trends in several of the observed explanatory variables -which in turn influence the hazard of trade flows dying in a negative direction -imply that the hazard tends to decrease over calendar time. On the other hand, there is also a positive trend in the hazard due to calendar year-specific unobserved factors. Holding all observed determinants constant, the probability of a trade flow dying in its first year increases from 34% at the beginning of the period to 90% at the end. Terms of use: Documents inJEL Classification: C41; F10; F14.

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Section: Introductionmentioning

confidence: 70%

Section: Data and Descriptive Statisticsmentioning

confidence: 99%

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Exploring the Long-Term Evolution of Trade Survival

Heß

Persson

2011

SSRN Journal

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“…Helpman et al [34] explored the impact of trade frictions on trade flows, where the extensive margin refers to the trade volume per exporter and the intensive margin refers to the number of exporters. Besedeš et al [35] claimed that developing countries had greater instability in terms of extensive margin. The consistent findings of Felbermayr et al [32], Helpman et al [34] and Besedeš et al [35] revealed that the majority of the growth in trade was due to the intensive margin rather than the extensive margin.…”

Section: Introductionmentioning

confidence: 99%

“…Besedeš et al [35] claimed that developing countries had greater instability in terms of extensive margin. The consistent findings of Felbermayr et al [32], Helpman et al [34] and Besedeš et al [35] revealed that the majority of the growth in trade was due to the intensive margin rather than the extensive margin. Focusing on Chinese industrial enterprises, Chen [36] argued that innovation played a positive role in promoting extensive and intensive export margins at a macro level.…”

Section: Introductionmentioning

confidence: 99%

Does Firms’ Innovation Promote Export Growth Sustainably?—Evidence from Chinese Manufacturing Firms

2016

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Recent theoretical analysis and empirical studies have emphasized that firms' innovation could significantly improve export growth. However, the positive effect of innovation on exports is likely to change due to unstable domestic offsetting for innovation and increasing worldwide competition for trade. This study aims to explore the dynamic link between them. We first develop a theoretical model between innovation and export growth based on the theory of heterogeneity. Export growth is measured through the dimensions of extensive margin and intensive margin so as to better investigate the effect of innovation on export performance. The propositions of mechanism analysis reveal that the effect of innovation on exports is non-linear rather than sustainable. An empirical study is followed to test the propositions by using data from a representative panel of Chinese manufacturing firms. Consistent with the theoretical predictions, the results show an inverted U-shaped relationship between innovation and extensive margin and a U-shaped relationship between innovation and intensive margin. The non-linear relations are verified by a threshold effect test. Further study shows less innovation and more firms on the left side of the relation curves. The distribution suggests irregular innovation ability among the exporters. Moreover, the role of innovation is more important for export growth and the corresponding threshold is higher in terms of high technological sectors. The contribution of this study is to introduce a comprehensive framework to investigate the dynamic effect of innovation on export growth, serving as a modest spur to induce the following studies to explore the sustainability of innovation effect.

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Effect of geographic distance on domestic trade: A case of the US Green industry

et al. 2021

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The prediction that the effect of geographic distance as a barrier for trade will decrease over time and eventually be eliminated as a result of technological developments has been proposed for decades. However, empirical evidence suggests the negative effect of geographic distance persists in both international and domestic trade. This study uses data from a national survey of nursery and greenhouse growers in the United States to investigate the effect of geographic distance on trade. We model trades as a two‐step process in which selling firms and buyers were matched first, and then a positive trade flow occurs conditional on the match. This process leads to a simple zero‐inflated estimation strategy and provides a meaningful interpretation of the zero‐trades. We demonstrate that this approach predicts the overall trade flow better than the Poisson or Gamma Pseudo Maximum Likelihood (PML) approach, due to its ability to predict zero trade flows more accurately. The empirical results indicate the effect of distance on trade volume is large and statistically significant. In addition, firms trade almost exclusively with partners in the home state or in states with branch offices. We find that social media and website advertising is much less effective in increasing the trade flow than traditional advertising channels. [EconLit Citations: Q17, Q13].

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The role of extensive and intensive margins and export growth

Cited by 287 publications

References 22 publications

Exploring the Long-Term Evolution of Trade Survival

Exploring the Long-Term Evolution of Trade Survival

Does Firms’ Innovation Promote Export Growth Sustainably?—Evidence from Chinese Manufacturing Firms

Effect of geographic distance on domestic trade: A case of the US Green industry

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