APL (Ajiken Power Lunch)

APL (Ajiken Power Lunch) is a lunchtime workshop open to public, including IDE staffs, visiting research fellows, IDEAS students, outside researchers and graduate students. This workshop provides a platform for presentation of any work in progress where we can discuss in either English or Japanese.

Those who would attend a seminar are asked to announce yourself to receptionists on your arrival at the IDE and to obtain APL Organizers' signature on your admission card after the seminar.

June 5, 2015. (Friday) 12：30-14：00

Institute of Developing Economies, Japan External Trade Organization C24 Meeting Room 　

Assortative Matching of Exporters and Importers (with Kensuke Teshima and Enrique Seira)

This paper examines the mechanism determining the matching of exporting firms and importing firms. From transaction data of Mexican textile/ apparel exports to the US, we report two new facts on exporter-importer matching at the product level. First, matching is approximately one-to-one. Second, in response to the entry of Chinese exporters into the US market induced by the end of the Multifibre Arrangement (MFA), US importers switched their Mexican partners to those making greater preshock exports whereas Mexican exporters switched their US partners to those making fewer preshock imports. To explain these facts, we present a model combining Becker-type positive assortative matching of final producers and suppliers by their capability with the standard Melitz type model. The model indicates that the observed matching change is evidence for a new source of gains from trade associated with firm heterogeneity.

Yoichi SUGITA （Inter-disciplinary Studies Center）

Tomohiro MACHIKITA

English/Japanese