Research Seminar

The Dynamics of Importer-Exporter Connections — Victor Gimenez-Perales

10 Aug 2021

Institut für Weltwirtschaft


Victor Gimenez-Perales (Kiel Institute)


I develop an importer-exporter model in which importers differ in productivity, substitutability of inputs and final demand elasticity. Importers invest in expanding the set of potential exporters and choose from which to source. The model delivers three novel predictions. The lower final demand elasticity and the higher substitutability of inputs of an importer: (i) the more likely are connections to be discontinued, (ii) the lower the trade value growth per surviving connection and (iii) the smaller the effects of trade cost shocks. I provide evidence in favor of all these predictions by using customs transaction data from Colombia, with the signing of FTAs as a source of exogenous variation.

Link to the paper


Victor Gimenez-Perales (Kiel Institute)


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