SMEs' heterogeneity at the extensive margin and within the intensive margin of trade

In this paper, we contribute to the literature on firm-heterogeneity and trade, by lookingnot only at the firm-level determinants of trade participation (i.e. extensive margin)but also at differences between firms with different levels of trade intensity (i.e. intensivemargin). Further, we compare firms that are born ‘local’ and display different scalesof international exposure to firms that are born ‘global’, i.e. access international marketssoon after their birth. Using a large World Bank dataset of SMEs from 112 countriesand qualitative dependent variable models, our analysis uncovers the heterogeneity ofSMEs not only at the extensive margin but also within the intensive margin of trade.Born local and born global firms present different characteristics.