Using a panel data set of Austrian service exporting firms this paper examines the determinants of service exports at the
firm- and destination country level. We implement a random effects Heckman sample selection firm‐level gravity model as well
as a fixed effects Poisson model. Expected firm‐level service exports are decomposed into the intensive and extensive margins
of adjustment as a response to counterfactual changes. We find market demand to be a key determinant. Results also suggest
high service export potentials due to regulatory reform in partner countries within the EU. Adjustments at the extensive margin
only play a marginal role. Increases in firm size as well as changes in distance related costs are most effective in developing
new export relationships in services.
Review of International Economics, 2019, 27, (1), pp.155-183
Using a panel data set of Austrian service exporting firms this paper examines the determinants of service exports at the
firm- and destination country level. We implement a random effects Heckman sample selection firm‐level gravity model as well
as a fixed effects Poisson model. Expected firm‐level service exports are decomposed into the intensive and extensive margins
of adjustment as a response to counterfactual changes. We find market demand to be a key determinant. Results also suggest
high service export potentials due to regulatory reform in partner countries within the EU. Adjustments at the extensive margin
only play a marginal role. Increases in firm size as well as changes in distance related costs are most effective in developing
new export relationships in services.
Review of International Economics, 2019, (27), pp.155-183
Using a panel data set of Austrian service exporting firms this paper examines the determinants of service exports at the
firm- and destination country level. We implement a random effects Heckman sample selection firm‐level gravity model as well
as a fixed effects Poisson model. Expected firm‐level service exports are decomposed into the intensive and extensive margins
of adjustment as a response to counterfactual changes. We find market demand to be a key determinant. Results also suggest
high service export potentials due to regulatory reform in partner countries within the EU. Adjustments at the extensive margin
only play a marginal role. Increases in firm size as well as changes in distance related costs are most effective in developing
new export relationships in services.
Danube: Law and Economics Review, 2011, (2), pp.23-41
We estimate a linear approximation of the market potential function for Europe as derived in geography and trade models. Using
a spatial econometric estimation approach, border effects are identified by a differential impact of other regions’ purchasing
power, depending on whether two regions are located within the EU15 or outside the EU15. We find that intra-EU15 borders have
an insignificant but EU15 external borders a significant effect on regional wage structures. We also illustrate the magnitude
of EU external border effects. Our results imply that border effects are most pronounced for border regions of new member
states, but relatively small for most regions of the EU15.
