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Bengt Söderlund . Photo

Bengt Söderlund

Senior lecturer

Bengt Söderlund . Photo

Redirecting International Trade: Contracts, Conflicts and Institutions

Author

  • Ari Kokko
  • Bengt Söderlund
  • Patrik Tingvall

Summary, in English

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.

Publishing year

2014

Language

English

Pages

688-721

Publication/Series

Jahrbucher fur Nationalokonomie und Statistik

Volume

234

Issue

6

Document type

Journal article

Publisher

De Gruyter

Topic

  • Economics

Keywords

  • exports
  • offshoring
  • trade
  • institutions
  • conflicts
  • contracts

Status

Published

ISBN/ISSN/Other

  • ISSN: 0021-4027