Product differentiation and duration of US import trade

Tibor Besedeš, Thomas J. Prusa

Research output: Contribution to journalArticlepeer-review

163 Scopus citations

Abstract

We examine the extent to which product differentiation affects duration of US import trade relationships. The results are consistent with a matching model of trade formation. Using highly disaggregated product level data we estimate the hazard rate is at least 23% higher for homogeneous goods than for differentiated products. The results are not only highly robust but are often strengthened under alternative specifications. As the smallest relationships are dropped, differences across product types increase. Controlling for potential measurement errors also results in larger differences across product types.

Original languageEnglish (US)
Pages (from-to)339-358
Number of pages20
JournalJournal of International Economics
Volume70
Issue number2
DOIs
StatePublished - Dec 2006

All Science Journal Classification (ASJC) codes

  • Finance
  • Economics and Econometrics

Keywords

  • Duration of trade
  • Product differentiation
  • Survival analysis

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