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Buyer-Seller Relationships in International Trade: Do Your Neighbors Matter?

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  • Fariha Kamal
  • Asha Sundaram

Abstract

Using confidential U.S. customs data on trade transactions between U.S. importers and Bangladeshi exporters between 2002 and 2009, and information on the geographic location of Bangladeshi exporters, we show that the presence of neighboring exporters that previously transacted with a U.S. importer is associated with a greater likelihood of matching with the same U.S. importer for the first time. This suggests a role for business networks among trading firms in generating exporter-importer matches. Our research design also allows us to isolate potential gains from neighborhood exporter presence that are partner-specific, from overall gains previously documented in the literature.

Suggested Citation

  • Fariha Kamal & Asha Sundaram, 2014. "Buyer-Seller Relationships in International Trade: Do Your Neighbors Matter?," Working Papers 14-44, Center for Economic Studies, U.S. Census Bureau.
  • Handle: RePEc:cen:wpaper:14-44
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    References listed on IDEAS

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    1. repec:eee:juecon:v:110:y:2019:i:c:p:89-101 is not listed on IDEAS
    2. repec:eee:inecon:v:112:y:2018:i:c:p:33-49 is not listed on IDEAS
    3. Ryan Monarch & Tim Schmidt-Eisenlohr, 2016. "Learning and the Value of Relationships in International Trade," CESifo Working Paper Series 5724, CESifo Group Munich.
    4. Carballo, Jeronimo & Ottaviano, Gianmarco I.P. & Volpe Martincus, Christian, 2018. "The buyer margins of firms' exports," Journal of International Economics, Elsevier, vol. 112(C), pages 33-49.
    5. Tim Schmidt-Eisenlohr & Ryan Monarch, 2015. "Learning and the Value of Relationships in International Trade," 2015 Meeting Papers 668, Society for Economic Dynamics.
    6. Fariha Kamal & Ryan Monarch, 2018. "Identifying foreign suppliers in U.S. import data," Review of International Economics, Wiley Blackwell, vol. 26(1), pages 117-139, February.
    7. Ryan Monarch, 2014. ""It's Not You, It's Me": Breakup In U.S.-China Trade Relationships," Working Papers 14-08, Center for Economic Studies, U.S. Census Bureau.
    8. Maggie X. Chen & Min Wu, 2016. "The Value of Reputation in Trade: Evidence from Alibaba," Working Papers 2016-20, The George Washington University, Institute for International Economic Policy.
    9. Kamal, Fariha & Sundaram, Asha, 2019. "Do institutions determine economic Geography? Evidence from the concentration of foreign suppliers," Journal of Urban Economics, Elsevier, vol. 110(C), pages 89-101.
    10. Tim Schmidt-Eisenlohr & Ryan Monarch, 2015. "Learning and the Value of Relationships in International Trade," 2015 Meeting Papers 668, Society for Economic Dynamics.
    11. SHIMAMOTO Daichi & Yu Ri KIM & TODO Yasuyuki, 2019. "The Effect of Social Interactions on Exporting Activities: Evidence from Micro, Small, and Medium-Sized Enterprises in rural Vietnam," Discussion papers 19020, Research Institute of Economy, Trade and Industry (RIETI).
    12. Paulo Bastos & Joana Silva & Eric Verhoogen, 2018. "Export Destinations and Input Prices," American Economic Review, American Economic Association, vol. 108(2), pages 353-392, February.
    13. Colin Hottman & Ryan Monarch, 2018. "Estimating Unequal Gains across U.S. Consumers with Supplier Trade Data," International Finance Discussion Papers 1220, Board of Governors of the Federal Reserve System (U.S.).
    14. Bisztray, Márta & Koren, Miklós & Szeidl, Adam, 2018. "Learning to import from your peers," Journal of International Economics, Elsevier, vol. 115(C), pages 242-258.

    More about this item

    Keywords

    exporter-importer match; trade networks; partner-specific spillovers;

    JEL classification:

    • F1 - International Economics - - Trade
    • F6 - International Economics - - Economic Impacts of Globalization
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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