Journal Article
No. 2016-21 | August 30, 2016
The Lumpiness of German Exports and Imports of Goods

Abstract

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.

JEL Classification:

F14

Assessment

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Links

Cite As

Joachim Wagner (2016). The Lumpiness of German Exports and Imports of Goods. Economics: The Open-Access, Open-Assessment E-Journal, 10 (2016-21): 1–38. http://dx.doi.org/10.5018/economics-ejournal.ja.2016-21


Comments and Questions


Jiddah M.A. Ajayi - recommendation
August 31, 2016 - 12:15

A very good work quite helpful to those of us in the trade economics field. quite educative on the lumpiness of German imports/exports of goods