International Buyer-Seller Matches

PSU Researcher(s)
James Tybout
Zi Wang
Jonathan Eaton

Additional Researchers (Affiliation)
David Jinkins (Copenhagen Business School)
Xi Yu (Duke University)
Cornell Krizan (Census Bureau)
Chuhang Yin (Duke University)

Description
"International Buyer-Seller Matches" (NSFGrant SES-142664) has three basic objectives. The first is to increase the usefulness of the Census Bureau's international trade statistics. This involves assessing the quality and possible biases of the shipment-level data that lie behind them, and it involves creating some new data sets that bring together shipment-level and firm-level information. The second objective is to calculate and analyze descriptive statistics that characterize the formation and maturation of cross-border business relationships, again using shipment-level and firm-level data. The final objective is to develop structural empirical models of international matching and network formation that allow us to address some policy-relevant questions that have received little attention. For example, how important are search frictions in limiting the gains from international buyer-seller matching? How much, if at all, have these gains grown with improvements in international communications over the past 20 years? Could it be that network effects make private investments in search sub-optimally low or high? And how important are the hysteresis effects in trade flows created by gradual adjustments in network structures?