Working Paper

Die Another Day: Duration in German Import Trade

Volker Nitsch
CESifo, Munich, 2007

CESifo Working Paper No. 2085

International trade patterns at the product level are surprisingly dynamic. The majority of trade relationships exist for just a few, often only one to three, years. In this paper, I examine empirically the duration in German import trade at the 8-digit product level from 1995 to 2005. I find that survival probabilities are affected by exporter characteristics, product type and market structure. Specifically, I show that the duration of exporting a product to Germany is longer for products obtained from countries that are economically large and geographically close to Germany; for products with large trade value and a low elasticity of substitution; and for trade pairs that command a large share of the German import market and are characterized by two-way trade.

CESifo Category
Trade Policy
Keywords: survival, product, relationship, pattern
JEL Classification: C140,C410,F140,F190