Intra-good trade in Germany: A first look at the evidence

Research output: Contributions to collected editions/worksChapterpeer-review

Authors

This paper contributes to the literature by using newly released comprehensive transaction level data on all exports and imports to document facts about the amount of intra-good trade-the simultaneous export and import of identical goods by one firm-in Germany. Combined data for trade transactions and for characteristics of a representative large sample of trading firms are then used to report differences between firms that export and import different goods only (inter-good traders) and firms that engage in the simultaneous export and import of identical goods (intra-good traders). We find that the share of intra-good trade in total trade was some 17 percent in Germany in 2012. Intra-good trade matters. This share differs widely between broadly defined groups of goods and between industries. Controlling for detailed industry affiliation intra-good traders differ significantly from inter-good traders-they are larger, more human capital intensive, more productive, have a higher R&D intensity, and are more profitable. The data, however, are not rich enough to reveal the direction of causality between intra-good trade and firm performance and to investigate empirically the reasons why some firms engage in intra-good trade.

Original languageEnglish
Title of host publicationMicroeconometric Studies Of Firms Imports And Exports : Advanced Methods Of Analysis And Evidence From German Enterprises
EditorsJoachim Wagner
Number of pages19
PublisherWorld Scientific Publishing Co.
Publication date25.02.2021
Pages339-357
ISBN (print)9781786349682
ISBN (electronic)9781786349705
DOIs
Publication statusPublished - 25.02.2021

    Research areas

  • Exports, Germany, Imports, Intra-product trade, Two-way trade
  • Economics