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."