Networks Versus Markets in International Trade

44 Pages Posted: 8 Nov 2011 Last revised: 7 Nov 2022

See all articles by James E. Rauch

James E. Rauch

University of California, San Diego (UCSD) - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: June 1996

Abstract

I propose a network/search view of international trade in differentiated products. I present evidence that supports the view that proximity and common language/colonial ties are more important for differentiated products than for products traded on organized exchanges in matching international buyers and sellers, and that search barriers to trade are higher for differentiated than for homogeneous products. I also discuss alternative explanations for the findings.

Suggested Citation

Rauch, James E., Networks Versus Markets in International Trade (June 1996). NBER Working Paper No. w5617, Available at SSRN: https://ssrn.com/abstract=1956410

James E. Rauch (Contact Author)

University of California, San Diego (UCSD) - Department of Economics ( email )

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