Assortative Matching of Exporters and Importers

Yoichi Sugita, Kensuke Teshima and Enrique Seira

Discussion papers from Research Institute of Economy, Trade and Industry (RIETI)

Abstract: We develop a novel approach to detect Beckerian positive assortative matching (PAM) of exporters and importers by capability. Conventional approaches examining firm characteristics across matches in cross-sectional data suffer from an endogeneity problem when firm characteristics reflect unobserved partner characteristics. Instead, using the entry of new exporters induced by trade liberalization as an exogenous shock to the capability rank of incumbent exporters, we investigate resulting re-matching patterns among incumbent exporters and importers. Examining Mexico-U.S. textile/apparel trade that experienced a surge in Chinese exporters after the Multi-Fibre Arrangement's end, we provide the first evidence for Beckerian PAM in exporter-importer relationships.

Pages: 71 pages
Date: 2017-03
New Economics Papers: this item is included in nep-int
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Citations: View citations in EconPapers (15)

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https://www.rieti.go.jp/jp/publications/dp/17e016.pdf (application/pdf)

Related works:
Journal Article: Assortative Matching of Exporters and Importers (2023)
Working Paper: Assortative matching of exporters and importers (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:eti:dpaper:17016

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