A League of Their Own: Services Exporters within Goods Exporters

Dincer, Nergiz and Tekin-Koru, Ayca (2014): A League of Their Own: Services Exporters within Goods Exporters.

Abstract

This paper sheds light on the intertwined nature of goods and services exports at the firm level. In the literature, services are considered as inputs in the production of goods rather than objects of trade in themselves. However, many firms produce and trade services with goods. In this perspective, this paper offers a systematic analysis of services exports in Turkey, which constitutes a relevant developing country example, by using rich, firm-level data for the period 2003-2008. Our results indicate that not only services firms but also manufacturing firms export services. Firms exporting both goods and services are consistently bigger than firms exporting only goods or only services. However, goods exporting multinational firms in Turkey are larger than multinationals that export both goods and services. Goods exporters with a larger size, higher labor productivity and capital intensity are more likely to export services as well. Furthermore, having a wide spectrum of goods to export increases the odds in favor of becoming a services exporter.

• Item Type: MPRA Paper
• Language: English
• Keywords: Goods and services exporters, services exports, firm heterogeneity
• Subjects: F - International Economics > F1 - Trade > F10 - General; F - International Economics > F1 - Trade > F14 - Empirical Studies of Trade

References

Ariu, A., 2012. Services versus Goods Trade: Are They the Same? Leuven: Katholieke Universiteit Leuven, Unpublished.

Bernard, A. B., Jensen, J. B., Redding, S. J. and Schott, P.K., 2007. Firms in International Trade. Journal of Economic Perspectives 21 (3), 105-130.

Borchsenius, V., Malchow-Moller, N., Munch, J. R. and Skaksen, R., 2010. International Trade in Services: Evidence from Danish Micro Data. Nationaloekonomisk Tidsskrift 148 (1), 86-107.

Breinlich, H. and Criscuolo, C., 2011. International Trade in Services: A Portrait of Importers and Exporters. Journal of International Economics 84 (2), 188–206.

Crozet, M., Milet, E. and Mirza, D., 2011. The Discriminatory Effect of Domestic Regulations on International Services Trade: Evidence from Firm-Level Data. Unpublished.

Damijan, J., Haller, S. A., Kaitila, V., Maliranta, M., Milet, E., and Rojec, M. (2012). The performance of trading firms in the services sectors Comparable evidence from four EU countries (No. 317). LICOS Discussion Paper. Francois, J. and Hoekman, B. (2010). Services trade and policy. Journal of Economic Literature, 642-692.

Frederico, S. and Tosti, E., 2011. Exporters and Importers of Services: Firm-level Evidence on Italy. Bank of Italy, Rome, Unpublished.

Grubljesic, T. and Damijan, J., 2011. From Differences in Export Behavior of Services and Manufacturing Firms in Slovenia. LICOS Discussion Paper 295, Center for Institutions and Economic Performance, KU Leuven.

Jensen, J. B. 2011. Global Trade in Services: Fear, Facts, and Offshoring. Peterson Institute for International Economics.

Kelle, M. 2012. Crossing Industrial Borders: German Manufactures as Services Exporters, Centro Studi Luca D’agliano Development Studies Working Papers 329.

Kelle, M., Kleinert, J., Raff, H., Toubal, F., 2012. Cross-Border and Foreign-Affiliate Sales of Services: Evidence from German Micro-Data. CEPR Discussion Papers 9016.

Leromain E. and G. Orefice 2013. New Revealed Comparative Advantage Index: Dataset and Empirical Distribution. CEPII Working Paper. No: 2013-20

Malchow-Moller, N., Munch, J. R., Skaksen, J. R., 2013. Services Trade, Goods Trade and Productivity Growth: Evidence from a Population of Private Sector Firms. CEBR Discussion Paper, Center for Economic and Business Research, Copenhagen.

Minondo, A., 2012. Trading Firms in the Spanish Services Sector. Deusto Business School, Unpublished Manuscript.

Tanaka, A., 2011. Multinationals in the Services and Manufacturing Sectors: A Firm-Level Analysis using Japanese Data. RIETI Discussion Paper 11-E-059, Research Institute of Economy, Trade & Industry, Japan.