S-WoPEc
 
Scandinavian Working Papers in Economics
HomeAboutSeriesSubject/JEL codesAdvanced Search
Department of Economics, University of Bergen Working Papers in Economics, Department of Economics, University of Bergen

No 04/15:
Duration and temporary trade

Hans-Martin Straume () and Frank Asche ()

Abstract: While the theory on the dynamics of trade duration is formulated at the firm level, most empirical analysis has been undertaken with data at a country and industry level. In this study, we have access to firm export data including the importing firm for one industry Norwegain salmon farming. This allow us to study trade dynamics in greater detail. Trade duration is investigated using two approaches; by estimating hazard rates, and by using a multinominal logit model. In the latter approach, we define the length of a trade relationship by number of transactions, including one category with relationships containing only one transaction hit and run strategies. As expected, the results indicate that the degree of dynamics increases as the data becomes more disaggregated. These results highlight the importance of firm-level data to understand the full extent of trade duration dynamics. It is of particular interest that trade relationships are shorter in larger markets being served by many companies and where competition, accordingly, seems keen, a feature that is masked in industry-level data.

Keywords: aquaculture; salmon; duration of trade; hit-and-run; temporary trade; (follow links to similar papers)

JEL-Codes: C41; F10; F14; (follow links to similar papers)

28 pages, October 3, 2015

Before downloading any of the electronic versions below you should read our statement on copyright.
Download GhostScript for viewing Postscript files and the Acrobat Reader for viewing and printing pdf files.

Full text versions of the paper:

working_paper_04-15.pdf    PDF-file
Download Statistics

Questions (including download problems) about the papers in this series should be directed to Kjell Erik Lommerud ()
Report other problems with accessing this service to Sune Karlsson () or Helena Lundin ().

Programing by
Design by Joachim Ekebom

Handle: RePEc:hhs:bergec:2015_004 This page was generated on 2015-10-03 13:03:08