Trade and Search: Social Capital, Sogo Shosha, and Spillovers
A network/search view of international trade in differentiated products is proposed. It is shown that this view can explain the importance of ethnic and extended family ties in trade, the success of diversified trading intermediaries such as Japan's sogo shosha, and the ubiquity of government export promotion policies such as subsidized trade missions.
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"Networks versus Markets in International Trade,"
NBER Working Papers
5617, National Bureau of Economic Research, Inc.
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in: The Regionalization of the World Economy, pages 91-120
National Bureau of Economic Research, Inc.
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