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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.

Suggested Citation

  • Volker Nitsch, 2007. "Die Another Day: Duration in German Import Trade," CESifo Working Paper Series 2085, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_2085
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    References listed on IDEAS

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    More about this item

    Keywords

    survival; product; relationship; pattern;

    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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