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Are trading partners complementary in international trade?

Author

Listed:
  • Hayakawa, Kazunobu
  • Tanaka, Kiyoyasu
  • Ueki, Yasushi

Abstract

We use a unique dataset on trading transactions at the firm level to investigate a complementary effect in international transactions between sellers and buyers; trading transactions are more likely to be international when both sellers and buyers are large in size than when either sellers or buyers are large. Our econometric analysis provides evidence for the complementary effect between trading partners on the likelihood of international trade, which is most prominent for exports from North to South.

Suggested Citation

  • Hayakawa, Kazunobu & Tanaka, Kiyoyasu & Ueki, Yasushi, 2010. "Are trading partners complementary in international trade?," IDE Discussion Papers 250, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper250
    as

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    File URL: https://ir.ide.go.jp/?action=repository_action_common_download&item_id=37921&item_no=1&attribute_id=22&file_no=1
    File Function: First version, 2010
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    More about this item

    Keywords

    Self-selection; Firm heterogeneity; Matching; Developing countries; Developed countries; International trade; Business enterprises;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • F10 - International Economics - - Trade - - - General

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