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Buyer–seller relationships in international trade: Do your neighbors matter?

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  • Kamal, Fariha
  • Sundaram, Asha

Abstract

Using confidential U.S. customs data on trade transactions between U.S. importers and Bangladeshi exporters between 2003 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 neighbors in generating importer–exporter matches. Our research design permits us to isolate potential gains from neighborhood exporter presence that are partner-specific, from overall gains previously documented in the literature.

Suggested Citation

  • Kamal, Fariha & Sundaram, Asha, 2016. "Buyer–seller relationships in international trade: Do your neighbors matter?," Journal of International Economics, Elsevier, vol. 102(C), pages 128-140.
    • Handle: RePEc:eee:inecon:v:102:y:2016:i:c:p:128-140
    DOI: 10.1016/j.jinteco.2016.07.006
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    More about this item

    Keywords

    Importer–exporter match; Trade partner-specific spillovers; Network of neighbors;
    All these keywords.

    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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