Excerpt
Excerpt
Venting Out: Exports during a Domestic Slump. Pol Antras, October 23, 2017, Paper, "Using Spanish firm level data for the period 2000-2013, we explore the differences in the export behavior of firms during the years of sustained economic growth, 2000-2008, and during the Great Recession years, 2009-2013. Exploiting geographical variation in the reduction in domestic demand caused by the financial crisis, we document empirically the existence of a robust, within-firm negative causal relationship between domestic sales and export flows: firms whose domestic sales were reduced by more during the crisis observed a larger increase in their export flows. This negative relationship between domestic sales and export flows reflects the capacity of export markets to counteract the negative impact of local demand shocks." Link