Firm heterogeneity and aggregate business
services exports : Micro evidence from
Belgium, France, Germany and Spain. National Bank of Belgium Working Paper No. 328
This paper uses detailed micro data on service exports at the firm-destination-service level to
analyse the role of firm heterogeneity in shaping aggregate service exports in Belgium, France,
Germany and Spain from 2003 to 2007. We decompose the level and the growth of aggregate
service exports into different trade margins paying special attention to firm heterogeneity within
countries. We find that the weak export growth of France is at least partly due to poor performance
by small exporters. By contrast, small exporters are the most dynamic contributors to the aggregate
exports of Belgium, Germany and Spain. Our results highlight the importance of firm heterogeneity
in understanding aggregate export growth
