Abstract

In terms of economic development, it makes a difference whether export increases at the extensive (new trade flows) or intensive margin (traditional, well-established trade flows).Global Economic Crisis,starting from US, then Europe,really started to showing its effect on 2008.Not only the GDP declines,but also world trade declines rapidly.There are two types of trade margins-1)Extensive and 2)Intensive . This paper seeks to determine whether the recent decline in international trade has affected relatively more trade at the extensive margin or at the intensive margin..Time period is 2003-2012,from these,2003-2007 is the pre crisis period and 2008-2012 is the crisis and post crisis period. The overall results indicate that the economic crisis of 2008 and 2009 has had more severe implications for those bilateral trade flows that did not exist before 2006. The analysis is done for Emerging Market Economies as EMEs are fastest growing economy.