Buyer-Seller Relationships in International Trade: Do Your Neighbors Matter?

51 Pages Posted: 4 Mar 2015

See all articles by Fariha Kamal

Fariha Kamal

Government of the United States of America - Bureau of the Census

Asha Sundaram

University of Auckland Business School

Date Written: October 01, 2014

Abstract

Using confidential U.S. customs data on trade transactions between U.S. importers and Bangladeshi exporters between 2002 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 business networks among trading firms in generating exporter-importer matches. Our research design also allows us to isolate potential gains from neighborhood exporter presence that are partner-specific, from overall gains previously documented in the literature.

Keywords: exporter-importer match, trade networks, partner-specific spillovers

JEL Classification: F01, F06, F14, L14, R12

Suggested Citation

Kamal, Fariha and Sundaram, Asha, Buyer-Seller Relationships in International Trade: Do Your Neighbors Matter? (October 01, 2014). US Census Bureau Center for Economic Studies Paper No. CES-WP- 14-44, Available at SSRN: https://ssrn.com/abstract=2573121 or http://dx.doi.org/10.2139/ssrn.2573121

Fariha Kamal (Contact Author)

Government of the United States of America - Bureau of the Census ( email )

4600 Silver Hill Road
Washington, DC 20233
United States

Asha Sundaram

University of Auckland Business School ( email )

12 Grafton Rd
Private Bag 92019
Auckland, 1010
New Zealand

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