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SMEs' heterogeneity at the extensive margin and within the intensive margin of trade

Lookup NU author(s): Professor Giorgio Fazio

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This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY-NC-ND).

Abstract

© 2021 Informa UK Limited, trading as Taylor & Francis Group.In this paper, we contribute to the literature on firm-heterogeneity and trade, by looking not only at the firm-level determinants of trade participation (i.e. extensive margin) but also at differences between firms with different levels of trade intensity (i.e. intensive margin). Further, we compare firms that are born ‘local’ and display different scales of international exposure to firms that are born ‘global’, i.e. access international markets soon after their birth. Using a large World Bank dataset of SMEs from 112 countries and qualitative dependent variable models, our analysis uncovers the heterogeneity of SMEs not only at the extensive margin but also within the intensive margin of trade. Born local and born global firms present different characteristics.

Publication metadata

Author(s): Aronica M, Fazio G, Piacentino D

Publication type: Article

Publication status: Published

Journal: Journal of International Trade and Economic Development

Year: 2021

Volume: 30

Issue: 3

Pages: 439-467

Online publication date: 21/01/2021

Acceptance date: 07/01/2021

Date deposited: 01/04/2021

ISSN (print): 0963-8199

ISSN (electronic): 1469-9559

Publisher: Routledge

URL: https://doi.org/10.1080/09638199.2021.1875024

DOI: 10.1080/09638199.2021.1875024

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