Trade and Search: Social Capital, Sogo Shosha, and Spillovers
(1221 K)
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NBER Working Paper No. 5618
Issued in June 1996
NBER Program(s): ITI
A network/search view of international trade in differentiated products is proposed. It is shown that this view can explain the importance of ethnic and extended family ties in trade, the success of diversified trading intermediaries such as Japan's sogo shosha, and the ubiquity of government export promotion policies such as subsidized trade missions.
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