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International trade in services: firm-level evidence for Portugal

Author

Listed:
  • João Amador

    (Banco de Portugal
    Nova School of Business and Economics)

  • Sónia Cabral

    (Banco de Portugal)

  • Birgitte Ringstad

    (Nova School of Business and Economics)

Abstract

This paper adds to the existing firm-level evidence on international trade in non-tourism services, using a new Portuguese database merged with balance-sheet data. In accordance with the literature, we find that a small number of firms that both export and import services (two-way traders) with diversified service and geographical portfolios account for a substantial share of trade flows. Compared with one-way traders, two-way traders are larger, older, more productive, more profitable and have a higher share of foreign equity. Considering all margins of firm-level trade and controlling for firms’ characteristics, the intensive margins of exports and imports of services are positively related to both productivity and profitability. Regarding the extensive margins, the number of services imported is also positively associated with firms’ performance.

Suggested Citation

  • João Amador & Sónia Cabral & Birgitte Ringstad, 2019. "International trade in services: firm-level evidence for Portugal," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 18(3), pages 127-163, October.
    • Handle: RePEc:spr:portec:v:18:y:2019:i:3:d:10.1007_s10258-019-00161-4
    DOI: 10.1007/s10258-019-00161-4
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    References listed on IDEAS

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    2. Catão, Luis A. V. & de Faria, Pedro & Martins, António & Portela, Miguel, 2023. "Globalization and Firm Performance," IZA Discussion Papers 15903, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    International trade; Services; Trade margins; Firm-level data;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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