Replication data for: The Value of Relationships: Evidence from a Supply Shock to Kenyan Rose Exports

Principal Investigator(s): View help for Principal Investigator(s) Rocco Macchiavello; Ameet Morjaria

Name	File Type	Size	Last Modified
AER-2012-0141-replication			08/02/2019 09:02:PM
LICENSE.txt	text/plain	14.6 KB	08/02/2019 05:02:PM

Project Citation:

Project Description

Summary: This paper provides evidence on the importance of reputation in the context of the Kenyan rose export sector. A model of reputation and relational contracting is developed and tested. A seller's reputation is defined by buyer's beliefs about seller's reliability. We show that (i) due to lack of enforcement, the volume of trade is constrained by the value of the relationship; (ii) the value of the relationship increases with the age of the relationship; and (iii) during an exogenous negative supply shock deliveries are an inverted-U shaped function of relationship's age. Models exclusively focusing on enforcement or insurance considerations cannot account for the evidence. (JEL D86, F14, L14, O13, O19, Q17)

Scope of Project

JEL Classification:
      O19 International Linkages to Development • Role of International Organizations
      F14 Empirical Studies of Trade
      Q17 Agriculture in International Trade
      O13 Agriculture • Natural Resources • Energy • Environment • Other Primary Products
      D86 Economics of Contract: Theory
      L14 Transactional Relationships • Contracts and Reputation • Networks

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V1 [2019-08-02]

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