08/03 - Firm Level Patterns in Merchandise Trade

May 2008

• ISBN: 978-0-478-31666-7 (HTML)
• ISBN: 978-0-478-31658-2 (PDF)

Abstract

In this paper we examine patterns of merchandise exporting at both the firm level (1996-2005) and the product level (1988-2005). The presentation is descriptive, and is intended to frame future analysis of the determinants and impact of observed trading behaviour. There are two main points of focus: the degree of concentration in export products, partners, and firms; and the dynamics of trade relationship entry and exit, where trade relationships can be defined according to the product, country or firm concerned, or a combination of the three. The main contribution is the development of a decomposition of export value growth into that coming from new entries, exits and continuing exporters and export relationships. Future work will examine the causal relationships underlying observed patterns of export market entry and exit, and the impact that these dynamics have on firm performance.

JEL Classification: D0, F1

Keywords: Merchandise Exports, Firm data, New Zealand

Contact: Occasionalpapers@med.govt.nz

Disclaimer

Access to the data used in this study was provided by Statistics New Zealand under conditions designed to give effect to the security and confidentiality provisions of the Statistics Act 1975. The research was funded by the Ministry of Economic Development and supported by Statistics New Zealand as part of the Improved Business Understanding via Longitudinal Database Development project (IBULDD). The results of this study are based in part on tax data supplied by Inland Revenue to Statistics New Zealand under the Tax Administration Act. This tax data must be used only for statistical purposes, and no individual information is provided back to Inland Revenue for administrative or regulatory purposes. Any discussion of data limitations or weaknesses is in the context of using the data for statistical purposes, and is not related to the ability of the data to support Inland Revenue's core operational requirements. Careful consideration has been given to the privacy, security and confidentiality issues associated with using tax data in this project. In particular, in the IBULDD dataset, individuals' tax data has been aggregated to the firm-level. Furthermore, only people authorised by the Statistics Act 1975 are allowed to see data about a particular firm.

The views, opinions, findings, and conclusions or recommendations expressed in this Occasional Paper are strictly those of the author(s). They do not necessarily reflect the views of the Ministry of Economic Development, Statistics New Zealand, or any other agencies to which the authors are affiliated. The Ministry takes no responsibility for any errors or omissions in, or for the correctness of, the information contained in these occasional papers. The paper is presented not as policy, but with a view to inform and stimulate wider debate.

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