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Firm-to-Firm Connections and Free Trade Agreements

Author

Listed:
  • Swati Dhingra
  • Esther Boler

    (Imperial College Business School)

  • Andrew Bernard

    (Dartmouth College)

Abstract

Recent work has emphasized the importance of the connections between exporters and importers both in aggregate trade flows and in the negative relationship between trade and geographic distance. This paper examines the role of trade policy and, in particular, Free Trade Agreements in the formation and duration of these importer-exporter relationships. Using customs data from Colombia for 1995-2014, we are able to identify both the Colombian importing firm and the foreign exporter in every Colombian import transaction. We document both the nature of these bilateral trading relationships and their evolution over time. FTAs signed by Colombia with a number of partners provide a unique view into the role of trade policy and tariffs in the formation and de- struction of trading links between firms.

Suggested Citation

  • Swati Dhingra & Esther Boler & Andrew Bernard, 2017. "Firm-to-Firm Connections and Free Trade Agreements," 2017 Meeting Papers 1366, Society for Economic Dynamics.
    • Handle: RePEc:red:sed017:1366
    as

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