Trade relationships during and after a crisis

Alejandra Martinez

Papers from arXiv.org

Abstract: I study how firms adjust to temporary disruptions in international trade relationships organized through relational contracts. I exploit an extreme, plausibly exogenous weather shock during the 2010-11 La Ni\~na season that restricted Colombian flower exporters' access to cargo terminals. Using transaction-level data from the Colombian-U.S. flower trade, I show that importers with less-exposed supplier portfolios are less likely to terminate disrupted relationships, instead tolerating shipment delays. In contrast, firms facing greater exposure experience higher partner turnover and are more likely to exit the market, with exit accounting for a substantial share of relationship separations. These findings demonstrate that idiosyncratic shocks to buyer-seller relationships can propagate into persistent changes in firms' trading portfolios.

Date: 2026-01, Revised 2026-01
References: Add references at CitEc
Citations:

Downloads: (external link)
http://arxiv.org/pdf/2601.14150 Latest version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:arx:papers:2601.14150

Access Statistics for this paper

More papers in Papers from arXiv.org
Bibliographic data for series maintained by arXiv administrators ().