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An economic model of search and matching in international trade

Author

Listed:
  • Jeffrey J. Reimer
  • Xin Zhang

Abstract

A framework is developed to explain export participation among firms that produce differentiated products and may choose to exert costly effort to find foreign buyers. Export participation is linked to firm search costs, importer search costs, tariffs, the rate of contract breakdown, the distribution of bargaining power, and the degree of product differentiation. Propositions are derived that shed light on historic changes in export participation among firms while also generating hypotheses for further study. The model is applied to small U.S. food manufacturers and is shown to be able to explain changes in export participation among such firms.

Suggested Citation

  • Jeffrey J. Reimer & Xin Zhang, 2018. "An economic model of search and matching in international trade," Review of International Economics, Wiley Blackwell, vol. 26(4), pages 784-800, September.
    • Handle: RePEc:bla:reviec:v:26:y:2018:i:4:p:784-800
    DOI: 10.1111/roie.12342
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    References listed on IDEAS

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    1. Changping Zhao & Yecheng Wang & Tianxiang Zhang & Qingbo Huang & Yu Gong, 2019. "The Game Simulation of “The Belt and Road” Economic and Trade Network Based on the Asymmetric QRE Model," Sustainability, MDPI, vol. 11(12), pages 1-17, June.

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