Redirecting International Trade

Contracts, Conflicts, and Institutions

Ari Kokko, Bengt Söderlund, Patrik Gustavsson Tingvall

    Research output: Contribution to journalJournal articleResearchpeer-review

    Abstract

    The global financial crisis has contributed to 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, based on Swedish firm-level trade data. Results suggest that weak institutions hamper trade and reduce the length of trade relations, especially for small firms. Trade in industries that are characterized by a high frequency of trade conflicts and where transactions require extensive relationship-specific investments are particularly difficult to redirect towards markets with weak institutions.
    Original languageEnglish
    JournalJahrbuecher fuer Nationaloekonomie und Statistik
    Volume234
    Issue number6
    Pages (from-to)688-721
    ISSN0021-4027
    Publication statusPublished - 2014

    Keywords

    • Exports
    • Offshoring
    • Trade
    • Institutions
    • Conflicts
    • Contracts

    Cite this

    Kokko, Ari ; Söderlund, Bengt ; Tingvall, Patrik Gustavsson. / Redirecting International Trade : Contracts, Conflicts, and Institutions. In: Jahrbuecher fuer Nationaloekonomie und Statistik. 2014 ; Vol. 234, No. 6. pp. 688-721 .
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    Redirecting International Trade : Contracts, Conflicts, and Institutions. / Kokko, Ari; Söderlund, Bengt; Tingvall, Patrik Gustavsson.

    In: Jahrbuecher fuer Nationaloekonomie und Statistik, Vol. 234, No. 6, 2014, p. 688-721 .

    Research output: Contribution to journalJournal articleResearchpeer-review

    TY - JOUR

    T1 - Redirecting International Trade

    T2 - Contracts, Conflicts, and Institutions

    AU - Kokko, Ari

    AU - Söderlund, Bengt

    AU - Tingvall, Patrik Gustavsson

    PY - 2014

    Y1 - 2014

    N2 - The global financial crisis has contributed to 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, based on Swedish firm-level trade data. Results suggest that weak institutions hamper trade and reduce the length of trade relations, especially for small firms. Trade in industries that are characterized by a high frequency of trade conflicts and where transactions require extensive relationship-specific investments are particularly difficult to redirect towards markets with weak institutions.

    AB - The global financial crisis has contributed to 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, based on Swedish firm-level trade data. Results suggest that weak institutions hamper trade and reduce the length of trade relations, especially for small firms. Trade in industries that are characterized by a high frequency of trade conflicts and where transactions require extensive relationship-specific investments are particularly difficult to redirect towards markets with weak institutions.

    KW - Exports

    KW - Offshoring

    KW - Trade

    KW - Institutions

    KW - Conflicts

    KW - Contracts

    M3 - Journal article

    VL - 234

    SP - 688

    EP - 721

    JO - Jahrbuecher fuer Nationaloekonomie und Statistik

    JF - Jahrbuecher fuer Nationaloekonomie und Statistik

    SN - 0021-4027

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