Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/179291
Authors: 
Christen, Elisabeth
Pfaffermayr, Michael
Wolfmayr, Yvonne
Year of Publication: 
2017
Series/Report no.: 
WIFO Working Papers 537
Abstract: 
Using a panel-data set of Austrian service exporting firms this paper examines the determinants of service exports at the firm-destination country level. We implement a random-effects Heckman sample selection firm-level gravity model as well as a fixed effects Poisson model. Expected firm-level service exports are decomposed into the intensive and extensive margins of adjustment as a response to counterfactual changes. We find market demand to be the key determinant. Results also suggest high service export potentials due to regulatory reform in partner countries within the EU. Adjustments at the extensive margin only play a marginal role. Increasing firm size as well as changes in distance related costs are most effective in developing new export relationships in services.
Subjects: 
Services trade
Firm-level evidence
Firm heterogeneity
Gravity model
Sample selection
Intensive and extensive margin of trade
JEL: 
C15
C21
D21
F14
L20
L80
Document Type: 
Working Paper

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