TY - JOUR
T1 - Venting out
T2 - Exports during a domestic slump
AU - Almunia, Miguel
AU - Antràs, Pol
AU - Lopez-Rodriguez, David
AU - Morales, Eduardo
N1 - Funding Information:
*Almunia: CUNEF Universidad and CEPR (email: miguel.almunia@cunef.edu); Antràs: Harvard University, NBER, and CEPR (email: pantras@fas.harvard.edu); Lopez-Rodriguez: Banco de España (email: david.lopezr@ bde.es); Morales: Princeton University, NBER, and CEPR (email: ecmorale@princeton.edu). Emi Nakamura was the coeditor for this article. We thank Pablo García-Guzmán, María Jesús González Sanz, and Xiang Zhang for excellent research assistance; Rafael Frutos and Francesco Serti for help with the tax records of firm-level sales within Spain; Carlos Llano for help with the C-Intereg data; and the coeditor, three anonymous referees, Antoine Berthou, Rafael Dix-Carneiro, Fernando Leibovici, Tim Schmidt-Eisenlohr, and Daniel Ramos for their detailed comments and discussions. We are also grateful to Olivier Blanchard, Kirill Borusyak, Olympia Bover, James Fenske, Clément Imbert, Wolfgang Keller, Danilo Leiva-León, Sergio Mayordomo, Enrique Moral, Michael Peters, Matías Pacce, Pedro Portugal, Felix Tintelnot, Alberto Urtasun; and seminar audiences at the EEA meetings in Lisbon, the EIIT conference in Washington, DC, Bank of Spain, Hitotsubashi, Warwick, CUNEF, Georgetown, Austin, IE Business School, University of Michigan, Banco de la República (Bogotá), CEMFI, Vienna, Vanderbilt, the NBER Summer Institute, UIBE (Beijing), UQAM (Montreal), Princeton, Harvard, the ECB, Erasmus University of Rotterdam, LSE, RIETI (Tokyo), Bilkent, Nebrija, Munich, Maryland, Boston College, UAM, UCM-ICAE, and the Philly Fed for useful comments. Finally, we particularly thank Óscar Arce for his continuous support throughout this project. Financial support from the Spanish Ministerio de Ciencia e Innovación (grant PID2019-111616GA-I00) is gratefully acknowledged. All errors are our own. Any views expressed in this paper are only those of the authors and should not be attributed to the Banco de España or the Eurosystem.
Funding Information:
Financial support from the Spanish Ministerio de Ciencia e Innovaci?n (grant PID2019-111616GA-I00) is gratefully acknowledged.
Publisher Copyright:
© 2021 American Economic Association. All rights reserved.
PY - 2021/11
Y1 - 2021/11
N2 - We study the relationship between domestic-demand shocks and exports using data for Spanish manufacturing firms in 2002–2013. Exploiting plausibly exogenous geographical variation caused by the Great Recession, we find that firms whose domestic sales declined by more experienced a larger increase in export flows, controlling for firms’ supply determinants. This result illustrates the capacity of export markets to counteract the negative impact of local demand shocks. By structurally estimating a heterogeneous-firm model of exporting with nonconstant marginal costs of production, we conclude that these firm-level responses accounted for half of the spectacular increase in Spanish goods exports over the period 2009–2013.
AB - We study the relationship between domestic-demand shocks and exports using data for Spanish manufacturing firms in 2002–2013. Exploiting plausibly exogenous geographical variation caused by the Great Recession, we find that firms whose domestic sales declined by more experienced a larger increase in export flows, controlling for firms’ supply determinants. This result illustrates the capacity of export markets to counteract the negative impact of local demand shocks. By structurally estimating a heterogeneous-firm model of exporting with nonconstant marginal costs of production, we conclude that these firm-level responses accounted for half of the spectacular increase in Spanish goods exports over the period 2009–2013.
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U2 - 10.1257/aer.20181853
DO - 10.1257/aer.20181853
M3 - Article
AN - SCOPUS:85106376644
SN - 0002-8282
VL - 111
SP - 3611
EP - 3662
JO - American Economic Review
JF - American Economic Review
IS - 11
ER -