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Preprints, Working Papers, ... Year : 2022

Search Frictions in International Goods Markets

Abstract

This paper studies how frictions in the acquisition of new customers distort the allocation of activities across heterogeneous producers. We add bilateral search frictions in a Ricardian model of trade and use French firm-to-firm trade data to estimate search frictions faced by French exporters in foreign markets. Estimated coefficients display a strong degree of heterogeneity across countries and products, that correlates with various proxies for information frictions. A counterfactual reduction in the level of search frictions improves the efficiency of the selection process and increases the average productivity of exports, because the least productive exporters are pushed out of the market, whereas exports increase at the top of the productivity distribution.
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Dates and versions

hal-03812813 , version 1 (12-10-2022)

Licence

Attribution - NonCommercial - NoDerivatives

Identifiers

  • HAL Id : hal-03812813 , version 1

Cite

Clémence Lenoir, Julien Martin, Isabelle Mejean. Search Frictions in International Goods Markets. 2022. ⟨hal-03812813⟩
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