Does a crisis increase the number of regular exporters?. Issue 20 (28th November 2019)

• Record Type: Journal Article
• Authors: de Lucio, Juan; Mínguez, Raúl; Minondo, Asier; Requena, Francisco
• Is Part Of: Applied economics letters. Volume 26:Issue 20(2019)
• Page Start: 1700
• Page End: 1704
• Publication Date: 2019-11-28
• Subjects: Capacity constraints -- new exporters -- regular exporters -- Spain -- crisis; F10 -- F14; Economics -- Periodicals; Economics, Mathematical -- Periodicals; 330
• DOI: 10.1080/13504851.2019.1591595
• Languages: English
• ISSNs: 1350-4851

Abstract

ABSTRACT: The severe reduction in domestic demand between 2008 and 2013 in Spain led many firms to start exporting. We explore whether the increase in the new crisis-induced exporters led to a larger number of regular exporters once domestic demand returned to pre-crisis levels. Using an instrumental variable approach, we find that a 10% increase in new exporters led to a 9% increase in the number of new regular exporters. Since the economic crisis was not anticipated in Spain, our results establish a causal link between a fall in domestic demand and the emergence of new regular exporters.