Relationship Specificity, Incomplete Contracts and the Pattern of Trade

By Nathan Nunn. 2007

1,735 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance, Sociology and Political Science

View Paper: https://www.semanticscholar.org/paper/2188018bd0a67842b1ddcb6b5abe7597019e8ae7

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

In Finance

In Sociology and Political Science

Citations in the corpus

Mitigating Incentive Conflicts in Inter-Firm Relationships: Evidence from Long-Term Supply Contracts (2013, methodology): “…indicator variable, Investment; investments vary by industry and typically include specialized plant or equipment purchases or upgrades.5 4 The prior literature typically relies only on firm- or industry-specific proxies to capture RSIs (e.g. Nunn, 2007; Williams, 2011; Houston and Johnson, 2000).”
Does institutional quality matter for trade? Institutional conditions in a sectoral trade framework (2018, background): “Trade affects institutions in a number of ways; particularly, through the complexity of intermediate inputs in relationship-specific investments and the need for contract security (see also Nunn, 2007).”
Exporting Out of Agriculture: The Impact of WTO Accession on Structural Transformation in China (2019, neutral): “In our regressions, we use data on China’s import tariffs from the WITS–TRAINS database, data on export licensing requirements from Bai et al. (2017), and data on the nature of contracting from Nunn (2007) to control for these policy changes.”
Intra-Firm Trade and Product Contractibility (Long Version) (2010, neutral): “11According to Nunn (2007), relationship speci c inputs are those that are not traded on organized exchanges as measured by Rauch (1999).”
The Return to Protectionism* (2019, positive): “…estimated by Broda and Weinstein (2006); (v) trade elasticities estimated by Caliendo and Parro (2015); (vi) contract intensity measured by Nunn (2007); (vii) inverse frequency of price adjustments from micro-data tabulated by Nakamura and Steinsson (2008) (a higher value indicates less…”
Knowledge-Based Capital, Innovation and Resource Allocation (2013, background): “Finally, well-designed legal systems can support efficient resource allocation (Haltiwanger, 2011), raise the returns to innovation (Nunn, 2007).”
Determinants of Global Value Chain Participation: Cross-Country Evidence (2020, positive): “51 Our cross-country cross-sector specification follows closely the Nunn (2007) and Chor (2010) comparative advantage models that explain trade flows in levels.”
Credit Constraints, Heterogeneous Firms and International Trade (2013, neutral): “Instead of financial market imperfections, others have explored the impact of labour market rigidities and limited contract enforcement (Helpman and Itskhoki, 2010; Cuñat and Melitz, 2012; Nunn, 2007; Levchenko, 2007).”
Employment Protection Legislation, Multinational Firms, and Innovation (2012, background): “We follow Nunn (2007) and use capital abundance and investment in skills at the country level, interacted with estimates of industry capital and skill intensity.”
When is Quality of Financial System a Source of Comparative Advantage (2011, neutral): “W = K + λwL +( r + c)Kmax + bavg 1 K max +( bavg 2 − b avg 1 )K2 ( 39 )”
Environmental regulation and foreign direct investment: Evidence from South Korea (2014, positive): “Nunn (2007), for instance, has emphasized the role of contractual frictions on trade flows: if final good producers had to commit a non-contractible, relationship-specific investment, they would prefer to invest in countries where the quality of contract enforcement is high in order to avoid a hold-”
Quality of government and regional resilience in the European Union. Evidence from the Great Recession (2019, background): “The sectoral composition of economic activity may affect the institutional framework (Nunn, 2007), which points to the possible existence of a connection between regional specialization and the quality of government.”
Domestic Institutions as a Source of Comparative Advantage (2013, positive): “One effect, which Nunn and Trefler (2008) call the ‘standard effect’ is that an improvement in μm causes some U.S. production to migrate abroad where it is outsourced, decreasing the share of U.S. imports that are intra-firm. The second effect, which they call the ‘surprise effect,’ arises because a”
An Elementary Theory of Comparative Advantage (2009, background): “This is equivalent to the monotone likelihood ratio property; see Milgrom (1981). In a trade context, this property may capture the fact that high-x1 countries are relatively more productive in high-x2 sectors, as in the Ricardian model, or that high-x1 countries are relatively more abundant in high”