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The Lumpiness of German Exports and Imports of Goods
KTH, School of Industrial Engineering and Management (ITM), Centres, Centre of Excellence for Science and Innovation Studies, CESIS. Leuphana Univ Lueneburg.
2016 (English)In: Economics, ISSN 1864-6042, E-ISSN 1864-6042, Vol. 10, 2016-21Article in journal (Refereed) Published
Abstract [en]

This paper looks at a hitherto neglected extensive margin of international trade by investigating for the first time the frequency at which German exporters and importers trade a given good with a given country. Imports and exports show a high degree of lumpiness. In a given year about half of all firm-good-country combinations are recorded only once or twice for trade with EU-countries, and this is the case for more than 60 percent of all firm-good-country combinations in trade with non-EU countries. The frequency of recorded transactions tends to decline with an increase in the number of transactions per year. This is in accordance with the presence of per-shipment fixed costs that provide an incentive for trading firms to engage in cross-border transactions infrequently. Empirical models show that for Germany the frequency of transactions at the firm-good-country level tends to decrease with an increase in per-shipment costs when unobserved firm and goods characteristics are controlled for.

Place, publisher, year, edition, pages
2016. Vol. 10, 2016-21
Keyword [en]
Lumpiness of trade, imports, exports, Germany
National Category
URN: urn:nbn:se:kth:diva-193827DOI: 10.5018/economics-ejournal.ja.2016-21ISI: 000383122500001OAI: diva2:1037631

QC 20161017

Available from: 2016-10-17 Created: 2016-10-11 Last updated: 2016-10-17Bibliographically approved

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Wagner, Joachim
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