Networks versus Markets in International Trade

James Rauch

No 5617, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: I propose a network/search view of international trade in differentiated products. I present evidence that supports the view that proximity and common language/colonial ties are more important for differentiated products than for products traded on organized exchanges in matching international buyers and sellers, and that search barriers to trade are higher for differentiated than for homogeneous products. I also discuss alternative explanations for the findings.

JEL-codes: F10 (search for similar items in EconPapers)
Date: 1996-06
Note: ITI
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (62)

Published as "Networks Versus Markets in International Trade," Journal of International Economics, Vol. 48 (June 1999): 7-35.

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Journal Article: Networks versus markets in international trade (1999)
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