Trade crisis? What trade crisis?
Journal article, Peer reviewed
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- Articles (SAM) 
Original versionReview of Economics and Statistics 2013, 95(2):702-709 10.1162/REST_a_00287
We investigate the 2008–2009 trade collapse using microdata from a small open economy, Belgium. Belgian exports and imports mostly fell because of smaller quantities sold and unit prices charged rather than fewer firms, trading partners, and products being involved in trade. Our difference-in-difference results point to a fall in the demand for tradables as the main driver of the collapse. Finance and involvement in global value chains played a minor role. Firm-level exports-to-turnover and imports-to- intermediates ratios reveal a comparable collapse of domestic and cross- border operations. Overall, our results reject a crisis of cross-border trade per se.
With permission from publisher. © 2013 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology