Firm heterogeneity and aggregate business services exports: Micro evidence from Belgium, France, Germany and Spain
Author(s) -
Ariu Andrea,
Biewen Elena,
Blank Sven,
Gaulier Guillaume,
González María Jesus,
Meinen Philipp,
Mirza Daniel,
Martín Cesar,
Tello Patry
Publication year - 2019
Publication title -
the world economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.594
H-Index - 68
eISSN - 1467-9701
pISSN - 0378-5920
DOI - 10.1111/twec.12707
Subject(s) - aggregate (composite) , economics , aggregate data , service (business) , international economics , international trade , economic geography , economy , medicine , materials science , pathology , composite material
Abstract This paper uses detailed micro data on services exports at the firm–destination–service level to analyse the role of firm heterogeneity in shaping aggregate services exports in Belgium, France, Germany and Spain from 2003 to 2007. We decompose the level and the growth of aggregate services exports into different trade margins paying special attention to firm heterogeneity within countries. We find that the weak export growth of France is at least partly due to poor performance by small exporters. By contrast, small exporters are the most dynamic contributors to the aggregate exports of Belgium, Germany and Spain. Our results highlight the importance of firm heterogeneity in understanding aggregate export growth.