Two-sided heterogeneity and trade

Andrew Bernard, Andreas Moxnes and Karen Helene Ulltveit-Moe

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: This paper develops a multi-country model of international trade that provides a simple microfoundation for buyer-seller relationships in trade. We explore a rich dataset that identifies buyers and sellers in trade and establish a set of basic facts that guide the development of the theoretical model. We use predictions of the model to examine the role of buyer heterogeneity in a market for firm-level adjustments to trade shocks, as well as to quantitatively evaluate how firms’ marginal costs depend on access to suppliers in foreign markets.

Keywords: Heterogeneous firms; exporters; importers; sourcing costs; trade elasticity (search for similar items in EconPapers)
JEL-codes: F4 (search for similar items in EconPapers)
Pages: 59 pages
Date: 2016-04
New Economics Papers: this item is included in nep-int, nep-pr~ and nep-net
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Citations: View citations in EconPapers (4)

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http://eprints.lse.ac.uk/66444/ Open access version. (application/pdf)

Related works:
Journal Article: Two-Sided Heterogeneity and Trade (2018)
Working Paper: Two-sided heterogeneity and Trade (2016)
Working Paper: Two-sided Heterogeneity and Trade (2016)
Working Paper: Two-Sided Heterogeneity and Trade (2014)
Working Paper: Two-sided Heterogeneity and Trade (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:66444

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