The intensive and extensive margins of trade: decomposing exports growth differences across Spanish Regions

Why do exports grow faster in some regions than in others? The regional literature has traditionally answered this question using a shift-share analysis, which focuses on regional differences in the composition of international exports by industry and destination. In this paper we apply an intensive...

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Main Authors: Asier Minondo Uribe-Etxeberria, Francisco Requena Silvente
Format: Article
Language:English
Published: AECR 2012-01-01
Series:Investigaciones Regionales - Journal of Regional Research
Subjects:
Online Access:http://www.aecr.org/images/ImatgesArticles/2012/10/Minondo.pdf
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author Asier Minondo Uribe-Etxeberria
Francisco Requena Silvente
author_facet Asier Minondo Uribe-Etxeberria
Francisco Requena Silvente
author_sort Asier Minondo Uribe-Etxeberria
collection DOAJ
description Why do exports grow faster in some regions than in others? The regional literature has traditionally answered this question using a shift-share analysis, which focuses on regional differences in the composition of international exports by industry and destination. In this paper we apply an intensive/extensive margin decomposition framework, which separates the role of new trade relationships, product survival and product deepening to explain the differences in international exports growth across Spanish regions. Unlike the predominance role of the intensive margin in country-level studies, our results show that both the intensive and the extensive margin can be very important components of regional exports growth. Moreover, the relevance of each component varies to a great extent across regions. Our findings suggest that policies implemented to promote exports should be designed at the regional level.
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spelling doaj.art-a4f5ee95b5544cc88dcdbcc36328c7ac2022-12-22T00:28:19ZengAECRInvestigaciones Regionales - Journal of Regional Research1695-72532012-01-01235376The intensive and extensive margins of trade: decomposing exports growth differences across Spanish RegionsAsier Minondo Uribe-EtxeberriaFrancisco Requena SilventeWhy do exports grow faster in some regions than in others? The regional literature has traditionally answered this question using a shift-share analysis, which focuses on regional differences in the composition of international exports by industry and destination. In this paper we apply an intensive/extensive margin decomposition framework, which separates the role of new trade relationships, product survival and product deepening to explain the differences in international exports growth across Spanish regions. Unlike the predominance role of the intensive margin in country-level studies, our results show that both the intensive and the extensive margin can be very important components of regional exports growth. Moreover, the relevance of each component varies to a great extent across regions. Our findings suggest that policies implemented to promote exports should be designed at the regional level.http://www.aecr.org/images/ImatgesArticles/2012/10/Minondo.pdfinternational exportsgrowthintensive marginextensive marginregionsSpain
spellingShingle Asier Minondo Uribe-Etxeberria
Francisco Requena Silvente
The intensive and extensive margins of trade: decomposing exports growth differences across Spanish Regions
Investigaciones Regionales - Journal of Regional Research
international exports
growth
intensive margin
extensive margin
regions
Spain
title The intensive and extensive margins of trade: decomposing exports growth differences across Spanish Regions
title_full The intensive and extensive margins of trade: decomposing exports growth differences across Spanish Regions
title_fullStr The intensive and extensive margins of trade: decomposing exports growth differences across Spanish Regions
title_full_unstemmed The intensive and extensive margins of trade: decomposing exports growth differences across Spanish Regions
title_short The intensive and extensive margins of trade: decomposing exports growth differences across Spanish Regions
title_sort intensive and extensive margins of trade decomposing exports growth differences across spanish regions
topic international exports
growth
intensive margin
extensive margin
regions
Spain
url http://www.aecr.org/images/ImatgesArticles/2012/10/Minondo.pdf
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AT asierminondouribeetxeberria intensiveandextensivemarginsoftradedecomposingexportsgrowthdifferencesacrossspanishregions
AT franciscorequenasilvente intensiveandextensivemarginsoftradedecomposingexportsgrowthdifferencesacrossspanishregions