A League of Their Own: Services Exporters within Goods Exporters

31 Pages Posted: 3 Feb 2014

See all articles by N. Nergiz Dincer

N. Nergiz Dincer

TED University; TED University Trade Research Center (TEDUTRC); Economic Research Forum

Ayça Tekin-Koru

TED University

Date Written: January 30, 2014

Abstract

This paper sheds light on the intertwined nature of goods and services exports at the firm level. In the literature, services are considered as inputs in the production of goods rather than objects of trade in themselves. However, many firms produce and trade services with goods. In this perspective, this paper offers a systematic analysis of services exports in Turkey, which constitutes a relevant developing country example, by using rich, firm-level data for the period 2003-2008. Our results indicate that not only services firms but also manufacturing firms export services. Firms exporting both goods and services are consistently bigger than firms exporting only goods or only services. However, goods exporting multinational firms in Turkey are larger than multinationals that export both goods and services. Goods exporters with a larger size, higher labor productivity and capital intensity are more likely to export services as well. Furthermore, having a wide spectrum of goods to export increases the odds in favor of becoming a services exporter.

Keywords: goods and services exporters, services exports, firm heterogeneity

JEL Classification: F10, F14

Suggested Citation

Dincer, Nazire Nergiz and Tekin-Koru, Ayca, A League of Their Own: Services Exporters within Goods Exporters (January 30, 2014). Available at SSRN: https://ssrn.com/abstract=2389912 or http://dx.doi.org/10.2139/ssrn.2389912

Nazire Nergiz Dincer

TED University ( email )

Ziya Gokalp Bulvari No: 48
Kolej Çankaya, Ankara 06420
Turkey

TED University Trade Research Center (TEDUTRC) ( email )

Ziya Gokalp Bulvari No: 48
Kolej Çankaya, Ankara 06420
Turkey

Economic Research Forum ( email )

21 Al-Sad Al-Aaly St.
(P.O. Box: 12311)
Dokki, Cairo
Egypt

Ayca Tekin-Koru (Contact Author)

TED University ( email )

Department of Business Administration
Ziya Gokalp Bulvari No: 48
Ankara, 06420
Turkey
+90 312 535 0034 (Phone)

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