Two-sided Search in International Markets

James Tybout, David Jinkins, Yi Xu () and Jonathan Eaton

No 973, 2016 Meeting Papers from Society for Economic Dynamics

Abstract: We develop a dynamic model of the many-to-many matching processes through which international business relationships are formed. Our formulation characterizes exporters' and importers' search efforts as functions of their type, their current portfolio of business partners, and the market conditions they face. After calibrating our model to customs records on Colombian retailers, we use it to study the steady state and transitory effects of China's emergence as a major supplier of consumer goods. In doing so we focus on the induced changes in matching patterns, the associated reallocation of rents across businesses, and the net effects on consumer welfare.

Date: 2016
New Economics Papers: this item is included in nep-dge
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Citations: View citations in EconPapers (20)

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Related works:
Working Paper: Two-sided Search in International Markets (2022)
Working Paper: Two-Sided Search in International Markets (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:red:sed016:973

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