A Search and Learning Model of Export Dynamics

Summary- A Search and Learning Model of Export Dynamics
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This article delves into the trade patterns between Colombian exporters and U.S. buyers, examining the dynamics of individual business relationships in detail. By analyzing customs data, the authors can observe several intriguing patterns. For instance, they find that most new exporters last only a short time in the U.S. market, with most dropping out within a year. However, those exporters who survive this initial "shakedown" period tend to experience rapid growth. Another key finding is that most buyer-seller matches are short-lived, lasting less than two years on average. Nevertheless, a handful of large sellers considerably impact the market, accounting for a substantial fraction o...