Firm-to-Firm Connections and Free Trade Agreements

Swati Dhingra, Esther Boler and Andrew Bernard
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Esther Boler: Imperial College Business School

No 1366, 2017 Meeting Papers from Society for Economic Dynamics

Abstract: Recent work has emphasized the importance of the connections between exporters and importers both in aggregate trade flows and in the negative relationship between trade and geographic distance. This paper examines the role of trade policy and, in particular, Free Trade Agreements in the formation and duration of these importer-exporter relationships. Using customs data from Colombia for 1995-2014, we are able to identify both the Colombian importing firm and the foreign exporter in every Colombian import transaction. We document both the nature of these bilateral trading relationships and their evolution over time. FTAs signed by Colombia with a number of partners provide a unique view into the role of trade policy and tariffs in the formation and de- struction of trading links between firms.

Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:red:sed017:1366

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