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Project Citation: 

Macchiavello, Rocco, and Morjaria, Ameet. Replication data for: The Value of Relationships: Evidence from a Supply Shock to Kenyan Rose Exports. Nashville, TN: American Economic Association [publisher], 2015. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-11. https://doi.org/10.3886/E112872V1

Project Description

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


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