Do Intensive and Extensive Margins Magnify Firm Growth? Evidence at the Firm Level

11 Pages Posted: 5 Feb 2024

See all articles by Erin Hui-Chuan Kao

Erin Hui-Chuan Kao

Tunghai University

Donald D. Lien

University of Texas at San Antonio - College of Business - Department of Economics

Jin-Tan Liu

National Taiwan University

Abstract

This study shows how exporting and importing affect firm growth. Using administrative firm-level data in Taiwan from 2006 to 2016, we find that survival trading firms, especially two-way traders, grow rapidly. Moreover, we find that firms participating in exports and imports along intensive margins and extensive margins in products and countries have higher growth rates. Conversely, firms that import more intermediates are more likely to survive, but they experience a decrease in employment growth.

Keywords: firm growth, export, import, intensive margin, extensive margin

Suggested Citation

Kao, Erin Hui-Chuan and Lien, Donald and Liu, Jin-Tan, Do Intensive and Extensive Margins Magnify Firm Growth? Evidence at the Firm Level. Available at SSRN: https://ssrn.com/abstract=4717061 or http://dx.doi.org/10.2139/ssrn.4717061

Erin Hui-Chuan Kao

Tunghai University ( email )

Taichung 407
Taiwan

Donald Lien

University of Texas at San Antonio - College of Business - Department of Economics ( email )

6900 North Loop 1604 West
San Antonio, TX 78249
United States
210-458-4313 (Phone)
210-458-4308 (Fax)

Jin-Tan Liu (Contact Author)

National Taiwan University ( email )

1 Sec. 4, Roosevelt Road
Taipei 106, 106
Taiwan

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