Redirecting International Trade: Contracts, Conflicts, and Institutions

Ari Kokko, Bengt Söderlund, Patrik Gustavsson Tingvall

    Research output: Working paperResearch


    The global financial crisis has accelerated the redirection of trade towards new markets, outside the OECD area, where both demand patterns and the institutional environment differ from those in the
    OECD. This study provides an empirical examination of the consequences of this shift. Results suggest that weak institutions hamper trade and reduces the length of trade relations, especially for small firms. Furthermore, trade in industries that are characterized by a high degree of trade conflicts and that requires extensive relationship specific investments for trade to occur are comparatively difficult to redirect towards markets with weak institutions.
    Original languageEnglish
    Place of PublicationStockholm
    PublisherRatio: Näringslivets forskningsinstitut
    Publication statusPublished - 2013
    SeriesRatio Working Paper


    • Exports
    • Offshoring
    • Institutions
    • Conflicts
    • Contracts

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