EconPapers    
Economics at your fingertips  
 

Relationship Stickiness, International Trade, and Economic Uncertainty

Julien Martin, Isabelle Mejean and Mathieu Parenti ()

Working Papers from HAL

Abstract: We study how stickiness in business relationships influences the trade impact of aggregate uncertainty. We first develop a product-level index of relationship stickiness estimated from firm-to-firm trade data. The measure is grounded into a search model in which more stickiness implies longer firm-to-firm trade relationships, conditional on match quality. We then show that relationship stickiness shapes the dynamics of trade in response to uncertainty shocks. Episodes of high macroeconomic uncertainty are associated with less trade, mostly driven by a decrease in the net creation of firm-to-firm relationships. Such adjustments are significantly more pronounced among the most sticky product categories.

Keywords: Firm-to-firm; Trade relationship; Specificity uncertainty (search for similar items in EconPapers)
Date: 2021-11-15
New Economics Papers: this item is included in nep-int
Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-03880132
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://sciencespo.hal.science/hal-03880132/document (application/pdf)

Related works:
Working Paper: Relationship stickiness, international trade, and economic uncertainty (2024) Downloads
Working Paper: Relationship stickiness, international trade, and economic uncertainty (2024) Downloads
Working Paper: Relationship Stickiness, International Trade, and Economic Uncertainty (2023) Downloads
Working Paper: Relationship Stickiness, International Trade, and Economic Uncertainty (2023) Downloads
Working Paper: Relationship Stickiness, International Trade, and Economic Uncertainty (2023) Downloads
Working Paper: Relationship Stickiness, International Trade, and Economic Uncertainty (2021) Downloads
Working Paper: Relationship Stickiness, International Trade, and Economic Uncertainty (2021) Downloads
Working Paper: Relationship stickiness, international trade, and economic uncertainty (2020) Downloads
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:wpaper:hal-03880132

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().

 
Page updated 2025-03-22
Handle: RePEc:hal:wpaper:hal-03880132