Using a panel-data set of Austrian service exporting firms this paper examines the determinants of service exports at the
firm-destination country level. We implement a random-effects Heckman sample selection firm-level gravity model as well as
a fixed effects Poisson model. Expected firm-level service exports are decomposed into the intensive and extensive margins
of adjustment as a response to counterfactual changes. We find market demand to be the key determinant. Results also suggest
high service export potentials due to regulatory reform in partner countries within the EU. Adjustments at the extensive margin
only play a marginal role. Increasing firm size as well as changes in distance related costs are most effective in developing
new export relationships in services.
Forschungsbereich:Industrieökonomie, Innovation und internationaler Wettbewerb