Redirecting International Trade: Contracts, Conflicts, and Institutions
AbstractThe global financial crisis has accelerated the redirection of trade towards new markets, outside the OECD area, where both demand patterns and the institutional environment differ from those in the OECD. This study provides an empirical examination of the consequences of this shift. Results suggest that weak institutions hamper trade and reduces the length of trade relations, especially for small firms. Furthermore, trade in industries that are characterized by a high degree of trade conflicts and that requires extensive relationship specific investments for trade to occur are comparatively difficult to redirect towards markets with weak institutions.
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Bibliographic InfoPaper provided by The Ratio Institute in its series Ratio Working Papers with number 226.
Length: 33 pages
Date of creation: 04 Dec 2013
Date of revision:
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Postal: The Ratio Institute, P.O. Box 5095, SE-102 42 Stockholm, Sweden
Phone: 08-441 59 00
Fax: 08-441 59 29
Web page: http://www.ratio.se/
More information through EDIRC
Exports; Offshoring; Trade; Institutions; Conflicts; Contracts;
Find related papers by JEL classification:
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- F55 - International Economics - - International Relations, National Security, and International Political Economy - - - International Institutional Arrangements
- K00 - Law and Economics - - General - - - General (including Data Sources and Description)
- P48 - Economic Systems - - Other Economic Systems - - - Political Economy; Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
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