Relationship Stickiness, International Trade, and Economic Uncertainty

Julien Martin, Isabelle Mejean () and Mathieu Parenti ()
Additional contact information
Julien Martin: UQAM - Université du Québec à Montréal = University of Québec in Montréal, CEPR - Center for Economic Policy Research
Isabelle Mejean: Institut d'Études Politiques [IEP] - Paris, CEPR - Center for Economic Policy Research
Mathieu Parenti: PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - ENPC - École nationale des ponts et chaussées - IP Paris - Institut Polytechnique de Paris, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - ENPC - École nationale des ponts et chaussées - IP Paris - Institut Polytechnique de Paris, ULB - Université libre de Bruxelles = Free University of Brussels, CESifo - LMU - Ludwig Maximilian University [Munich] = Ludwig Maximilians Universität München, CEPR - Center for Economic Policy Research

Post-Print from HAL

Abstract: Abstract We study how stickiness in business relationships influences the trade impact of aggregate uncertainty. To begin, we construct a product-level index of relationship stickiness using firm-to-firm relationship duration data. We then demonstrate how relationship stickiness shapes trade dynamics in response to uncertainty shocks. We find that episodes of uncertainty lead to a decline in the overall establishment of new business relationships, with the impact varying depending on the level of stickiness. In markets characterized by high stickiness, uncertainty shocks primarily impede investments in new firm-to-firm relationships. In contrast, for nonsticky products, the adjustment to uncertainty shocks mainly manifests as the disruption of existing relationships.

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

Published in Review of Economics and Statistics, 2026, 108 (1), pp.179-193. ⟨10.1162/rest_a_01396⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:hal:journl:halshs-05660676

DOI: 10.1162/rest_a_01396

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().