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Die another day: duration in German import trade

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  • Volker Nitsch

Abstract

International trade patterns at the product level are surprisingly dynamic. The majority of trade relationships exist for just a few, often only one to three, years. In this paper, I examine empirically the duration in German import trade at the 8-digit product level from 1995 to 2005. I find that survival probabilities are affected by exporter characteristics, product type and market structure. Specifically, I show that the duration of exporting a product to Germany is longer for products obtained from countries that are economically large and geographically close to Germany; for products with large trade value and a low elasticity of substitution; and for trade pairs that command a large share of the German import market and are characterized by two-way trade.
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  • Volker Nitsch, 2009. "Die another day: duration in German import trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 145(1), pages 133-154, April.
  • Handle: RePEc:spr:weltar:v:145:y:2009:i:1:p:133-154
    DOI: 10.1007/s10290-009-0008-3
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    More about this item

    Keywords

    Survival; Product; Relationship; Pattern; F14; F19; C14; C41;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F19 - International Economics - - Trade - - - Other

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