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

Asier Minondo () and Francisco Requena Silvente

INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, 2012, issue 23, 53-76

Abstract: 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.

Keywords: international exports; growth; intensive margin; extensive margin; regions; Spain (search for similar items in EconPapers)
JEL-codes: F10 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:ris:invreg:0013

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