NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Networks versus Markets in International Trade

James E. Rauch

NBER Working Paper No. 5617
Issued in June 1996
NBER Program(s):   ITI

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.

download in pdf format
   (1619 K)

email paper

This paper is available as PDF (1619 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w5617

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

Users who downloaded this paper also downloaded these:
Rauch w5618 Trade and Search: Social Capital, Sogo Shosha, and Spillovers
Rauch and Trindade w7189 Ethnic Chinese Networks in International Trade
Chaney w16753 The Network Structure of International Trade
Gopinath, Itskhoki, and Rigobon w13432 Currency Choice and Exchange Rate Pass-through
Helpman, Melitz, and Rubinstein w12927 Estimating Trade Flows: Trading Partners and Trading Volumes
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us