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Are trading partners complementary in international trade?

Kazunobu Hayakawa (), Kiyoyasu Tanaka () and Yasushi Ueki ()

No 250, IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO)

Abstract: We use a unique dataset on trading transactions at the firm level to investigate a complementary effect in international transactions between sellers and buyers; trading transactions are more likely to be international when both sellers and buyers are large in size than when either sellers or buyers are large. Our econometric analysis provides evidence for the complementary effect between trading partners on the likelihood of international trade, which is most prominent for exports from North to South.

Keywords: Self-selection; Firm heterogeneity; Matching; Developing countries; Developed countries; International trade; Business enterprises (search for similar items in EconPapers)
JEL-codes: D24 F10 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-int
Date: 2010-08
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Published in IDE Discussion Paper = IDE Discussion Paper, No. 250. 2010-08

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