Assortative Matching of Exporters and Importers

Yoichi Sugita, Kensuke Teshima and Enrique Seira
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Enrique Seira: ITAM and Michigan State University

The Review of Economics and Statistics, 2023, vol. 105, issue 6, 1544-1561

Abstract: This paper studies how exporting and importing firms match based on their capability by investigating the change in such exporter-importer matching during trade liberalization. During the recent liberalization of the Mexico-U.S. textile and apparel trade, exporters and importers often switch their main partners as well as change trade volumes. We develop a many-to-many matching model of exporters and importers where partner switching is the principal margin of adjustment, featuring Beckerian positive assortative matching by capability. Trade liberalization achieves efficient global buyer-supplier matching and improves consumer welfare by inducing systematic partner switching. The data confirm the predicted partner-switching patterns.

Date: 2023
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Citations: View citations in EconPapers (3)

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https://doi.org/10.1162/rest_a_01114

Related works:
Working Paper: Assortative Matching of Exporters and Importers (2017)
Working Paper: Assortative matching of exporters and importers (2016)
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