Relationship Stickiness, International Trade, and Economic Uncertainty - Sciences Po
Article Dans Une Revue Review of Economics and Statistics Année : 2023

Relationship Stickiness, International Trade, and Economic Uncertainty

Résumé

We study how stickiness in business relationships influences the trade impact of aggregate uncertainty. To begin, we construct a product-level index of relationship stickiness using firm-to-firm relationship duration data. We then demonstrate how relationship stickiness shapes trade dynamics in response to uncertainty shocks. We find that episodes of uncertainty lead to a decline in the overall establishment of new business relationships, with the impact varying depending on the level of stickiness. In markets characterized by high stickiness, uncertainty shocks primarily impede investments in new firm-to-firm relationships. In contrast, for non-sticky products, the adjustment to uncertainty shocks mainly manifests as the disruption of existing relationships.
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Dates et versions

hal-04516313 , version 1 (22-03-2024)

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Julien Martin, Isabelle Mejean, Mathieu Parenti. Relationship Stickiness, International Trade, and Economic Uncertainty. Review of Economics and Statistics, 2023, pp.2-83. ⟨10.1162/rest_a_01396⟩. ⟨hal-04516313⟩
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