Open Economies Review

, Volume 24, Issue 5, pp 901–918 | Cite as

Multilateral Export Decompositions

Research Article

Abstract

We analyze exports along five margins to observe the changes of newly exported products, products removed from the export market, and continuously traded products to new, old, and exited destinations on export growth. We find export shares differ between developing and developed countries: 1) entering and exiting products are an important source of export value, but more so for developing than developed countries, 2) that continuously exported products to new destinations are a more important source of export value for developing than developed countries, 3) that though the removal of exiting products has a large impact on export value, the removal of products from one destination that continue to be exported elsewhere results in little loss to total export value, and 4) that larger and richer exporting countries have less opportunity to increase exports from new destinations than smaller and poorer exporting countries. Understanding the change in these margins across different types of countries may be important for formulating trade agreements and targeting of new trade partners.

Keywords

International trade Exports Products 

JEL Classifications

F12 F14 L60 

References

  1. Bernard AB, Jensen JB, Schott PK (2003) Falling trade costs heterogenous firms, and industry dynamics. NBER working paper no 9639. http://www.nber.org/papers/w9639.pdf
  2. Bernard AB, Jensen JB, Redding SJ, Schott PK (2009) The margins of U.S. trade (long version), NBER working paper no 14662Google Scholar
  3. Cassey AJ, Schmeiser KN (2013) Six comparisons of firm-level and product-level data. Appl Econ Lett 20:382–385CrossRefGoogle Scholar
  4. Eaton J, Kortum S (2002) Technology, geography, and trade. Econometrica 70(5):1741–1779CrossRefGoogle Scholar
  5. Eaton J, Eslava M, Kugler M, Tybout JE (2007) Export dynamics in Colombia: firm-level evidence. NBER working paper no 13531. http://www.nber.org/papers/w13531.pdf
  6. Eaton J, Kortum S, Kramarz F (2011) An anatomy of international trade: evidence from French firms. Econometrica 79(5):1453–1498CrossRefGoogle Scholar
  7. Evenett SJ, Venables A (2002) Export growth by developing economies: market entry and bilateral trade. CEPR working paper no 2315. http://www.alexandria.unisg.ch/publications/22177
  8. Feenstra RC, Lipsey RE, Deng H, Ma AC, Mo H (2005) World trade flows: 1962–2000. NBER working paper no 11040. http://cid.econ.ucdavis.edu/data/undata/NBER-UN_Data_Documentation_w11040.pdf
  9. FRED (2011) Federal Reserve Economic Data. St. Louis Federal Reserve Bank. Producer Price Index on Finished Goods (PPIFGS). http://research.stlouisfed.org/fred2/. Accessed 18 Apr 2011
  10. Kehoe TJ, Ruhl KJ (2009) How important is the new goods margin in international trade? Federal Reserve Bank of Minneapolis Staff Report no 324. http://www.minneapolisfed.org/research/sr/SR324.pdf
  11. Melitz MJ (2003) The impact of trade on intra-industry reallocations and aggregate industry productivity. Econometrica 71(6):1695–1725CrossRefGoogle Scholar
  12. Ruhl KJ, Willis JL (2008) New exporter dynamics. NYU Stern School of BusinessGoogle Scholar
  13. Schmeiser KN (2012) Learning to export: export growth and the destination decision. J Int Econ 87(1):89–97CrossRefGoogle Scholar
  14. WDI (2011) World Development Indicators. Series on GDP (2000USD) NY.GDP.MKTP.KD. http://data.worldbank.org/data-catalog/world-development-indicators. Accessed 6 June 2011

Copyright information

© Springer Science+Business Media New York 2013

Authors and Affiliations

  1. 1.School of Economic SciencesWashington State UniversityPullmanUSA
  2. 2.Department of EconomicsMt. Holyoke CollegeSouth HadleyUSA

Personalised recommendations