Current Research
New, February 2017
Linking Services to Manufacturing Exports
In this paper we analyse the interplay between services and manufacturing. This is done through identifying and quantifying a direct link between manufacturing exports and the sales by service providers. For identification of this transmittance mechanism, with the help of highly detailed geographic data, we create a Localised Export Exposure (LEE) variable that captures the variation in demand for service inputs based on nearby exporters. Since service firms are much less geographically specialised than manufacturing firms, we observe a high variation in their exposure to demand changes. This spatial variation in the demand for service inputs results from a variation in local export volumes (LEE); which is used to assess the interplay between manufacturing exports and services. Our results show that a 1% increase in exports increases the volume of sales of service firms by 0.2% (and employment within the firm by 0.06%). The results show also that the link is highly local and the strongest impact is within 20 km of the shock.
The working paper is available here.
Note: Previously distributed under the name Linking Services and Global Shocks.
The working paper is available here.
Note: Previously distributed under the name Linking Services and Global Shocks.
New, September 2017
The Superstar and the Followers: Intra-Firm Product Complementarity in International Trade
This paper investigates whether firms’ exports of different products within a market are systematically interconnected. Using high-quality Swedish firm-registry data from 1997-2011, I first document that the distribution of firm export sales is skewed towards their best performing products (‘superstars’). I then use a novel instrumental variable approach to identify if the ‘superstar’ products induce more trade of non-superstar products. I find evidence that the exports of low-ranked (non-star) products of a firm are contingent on the exports of a single superstar product to each destination. Extending the ‘superstar’ concept to a ‘superstar core’ of products strengthens this result. Hence, I find that the exports of non-star products complements the superstar(s) while conversely, the same complementarity is not found using low-ranked products as placebo-superstars. The main contributions of this paper is identifying a new, sizeable and systematic intra-firm-destination one-way demand driven complementarity between products that can explain export sales variation within a market. Ignoring this pattern of between product dependency may lead to an over-emphasis on product scope as products should not be viewed in isolation.
The updated working paper from September 2017 is available here.
The updated working paper from September 2017 is available here.
New, October 2016
Bridging Trade Barriers: Evaluating Models of Multi-Product Exporters
In this paper I investigate the impact of a decrease in trade costs on firm decisions to export. The main contribution of this paper is to evaluate empirically the theoretical predictions of several models of multi-product exporters. The focus is on the firm export entry decision and the within firm adjustment regarding product scope and intensity. For identification, a quasi-natural experiment, the introduction of the Öresund bridge between southern Sweden and Denmark, is used to analyse the impact on firm behaviour. Using a difference-in-difference methodology, firms in the ’treated’ municipality, Malmö, are compared to firms in the more geographically distant Gothenburg (’control’). For the ’treated’ firms a theoretically consistent positive effect is found on firm entry into exporting, aggregate firm trade flow and the number of products exported. While the models of multi-product exporters evaluated do not provide a clear theoretical prediction regarding the impact on average trade value per product, I find a sizeable significant effect. Decomposing the results, I find that the main effects are driven by firms in the manufacturing sectors. The results are robust to extending the sample to include Stockholm as well as exports to alternative destinations.
Bridging Trade Barriers: Evaluating Models of Multi-Product Exporters
In this paper I investigate the impact of a decrease in trade costs on firm decisions to export. The main contribution of this paper is to evaluate empirically the theoretical predictions of several models of multi-product exporters. The focus is on the firm export entry decision and the within firm adjustment regarding product scope and intensity. For identification, a quasi-natural experiment, the introduction of the Öresund bridge between southern Sweden and Denmark, is used to analyse the impact on firm behaviour. Using a difference-in-difference methodology, firms in the ’treated’ municipality, Malmö, are compared to firms in the more geographically distant Gothenburg (’control’). For the ’treated’ firms a theoretically consistent positive effect is found on firm entry into exporting, aggregate firm trade flow and the number of products exported. While the models of multi-product exporters evaluated do not provide a clear theoretical prediction regarding the impact on average trade value per product, I find a sizeable significant effect. Decomposing the results, I find that the main effects are driven by firms in the manufacturing sectors. The results are robust to extending the sample to include Stockholm as well as exports to alternative destinations.
Publications
Monograph:
"Exports and Externalities", Doctoral Thesis, November 2016
Opponent: Andreas Moxnes
Other committee members: Rikard Forslid, Kerstin Enflo, Karin Olofsdotter
Shorter Articles
"The Paternity Leave Act in Iceland: Implications for Gender Equality in the Labor Market," Applied Economic Letters, volume 17, issue 7, 2010 (with Aparna Mitra.)
"Exports and Externalities", Doctoral Thesis, November 2016
Opponent: Andreas Moxnes
Other committee members: Rikard Forslid, Kerstin Enflo, Karin Olofsdotter
Shorter Articles
"The Paternity Leave Act in Iceland: Implications for Gender Equality in the Labor Market," Applied Economic Letters, volume 17, issue 7, 2010 (with Aparna Mitra.)