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Coping with the Crisis: Recent Evolution in Danish Firms' International Trade Involvement, 2000-2010

Author

Listed:
  • Kaleb Girma Abreha

    (Department of Economics and Business, Aarhus University)

  • Valérie Smeets
  • Frédéric Warzynski

    (Department of Economics and Business, Aarhus University)

Abstract

Using a highly disaggregated firm-product-destination level data from Denmark, we document salient features of Danish international production in the recent decade. These include systematic variation in export participation of firms across industries, positive correlation between the scope (number of products exported and markets served) and scale of exporting activities, considerable dominance of multi-product and multi-destination firms, existence of carry-along trade, the prevalence of core and peripheral products in exports, a small role of economy-wide entry and exit of firms and products, and a sizable role of firm-level adding and dropping of products and product-destination combinations as a margin of trade adjustment. Finally, we show that firms responded to the latest economic shock mainly by adjusting the scale of exports and imports. At the same time, changing their products and productdestination combinations helped them to mitigate the negative effects of the shock.

Suggested Citation

  • Kaleb Girma Abreha & Valérie Smeets & Frédéric Warzynski, 2013. "Coping with the Crisis: Recent Evolution in Danish Firms' International Trade Involvement, 2000-2010," Economics Working Papers 2013-15, Department of Economics and Business Economics, Aarhus University.
    • Handle: RePEc:aah:aarhec:2013-15
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    File URL: https://repec.econ.au.dk/repec/afn/wp/13/wp13_15.pdf
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    References listed on IDEAS

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    1. Costas Arkolakis & Sharat Ganapati & Marc-Andreas Muendler, 2021. "The Extensive Margin of Exporting Products: A Firm-Level Analysis," American Economic Journal: Macroeconomics, American Economic Association, vol. 13(4), pages 182-245, October.
    2. Roberto Alvarez & Ricardo A. López, 2005. "Exporting and performance: evidence from Chilean plants," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 38(4), pages 1384-1400, November.
    3. João Amador & Luca Opromolla, 2013. "Product and destination mix in export markets," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 149(1), pages 23-53, March.
    4. Kristian Behrens & Gregory Corcos & Giordano Mion, 2013. "Trade Crisis? What Trade Crisis?," The Review of Economics and Statistics, MIT Press, vol. 95(2), pages 702-709, May.
    5. Davide Castellani & Francesco Serti & Chiara Tomasi, 2010. "Firms in International Trade: Importers’ and Exporters’ Heterogeneity in Italian Manufacturing Industry," The World Economy, Wiley Blackwell, vol. 33(3), pages 424-457, March.
    6. Martin Andersson & Hans Lööf & Sara Johansson, 2008. "Productivity and International Trade: Firm Level Evidence from a Small Open Economy," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 144(4), pages 774-801, December.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Eckel, Carsten & Riezman, Raymond, 2020. "CATs and DOGs," Journal of International Economics, Elsevier, vol. 126(C).
    2. Benjamin Friedrich, 2015. "Trade Shocks, Firm Hierarchies and Wage Inequality," Economics Working Papers 2015-26, Department of Economics and Business Economics, Aarhus University.
    3. Joachim Wagner, 2016. "A survey of empirical studies using transaction level data on exports and imports," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 152(1), pages 215-225, February.
    4. Joachim Wagner, 2017. "Intra-good trade in Germany: a first look at the evidence," Applied Economics, Taylor & Francis Journals, vol. 49(57), pages 5753-5761, December.
    5. Aksel Erbahar, 2020. "Two worlds apart? Export demand shocks and domestic sales," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 156(2), pages 313-342, May.
    6. Lawless, Martina & Siedschlag, Iulia & Studnicka, Zuzanna, 2017. "Expanding and diversifying the manufactured exports of Irish-owned enterprises," Research Series, Economic and Social Research Institute (ESRI), number BKMNEXT335.

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    More about this item

    Keywords

    Foreign trade; Trade collapse; Margins of Trade; Denmark;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F6 - International Economics - - Economic Impacts of Globalization
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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