Multilateral Export Decompositions

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.

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Notes

  1. 1.

    The data for years 1970–1983 were originally collected under SITC Revision 1, however, they have been recoded and are now only available in Revision 2 classification.

  2. 2.

    We perform the same exercise using more recent product data after the revision, but the time period is much shorter. We find a qualitative match in results that we interpret as a robustness check on the results reported. An analysis of the newer data is available upon request.

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Correspondence to Andrew J. Cassey.

Additional information

The authors thank Tim Kehoe and an anonymous referee for excellent suggestions. Portions of this research supported by the Agricultural Research Center Project #0540 atWashington State University.

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Cassey, A.J., Schmeiser, K.N. Multilateral Export Decompositions. Open Econ Rev 24, 901–918 (2013). https://doi.org/10.1007/s11079-013-9273-9

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Keywords

  • International trade
  • Exports
  • Products

JEL Classifications

  • F12
  • F14
  • L60