*Direct correspondence to Sangmoon Kim, Department of Sociology & Criminology, University of North Carolina Wilmington, Wilmington, NC 28403 〈email@example.com〉. We thank the anonymous reviewers of Social Science Quarterly for their helpful comments. We will share all data and coding information with those who wish to replicate the study.
Embedded Trade: A Third-Party Effect*
Version of Record online: 25 OCT 2010
© 2010 by the Southwestern Social Science Association
Social Science Quarterly
Volume 91, Issue 4, pages 964–983, December 2010
How to Cite
Kim, S. and Skvoretz, J. (2010), Embedded Trade: A Third-Party Effect. Social Science Quarterly, 91: 964–983. doi: 10.1111/j.1540-6237.2010.00744.x
- Issue online: 25 OCT 2010
- Version of Record online: 25 OCT 2010
Objectives. Previous work on trade, mostly from an economic perspective, assumes dyadic independence, and thus that trade can be explained by attributes of such dyads. We critique these contentions from the perspective of structural embeddedness, hypothesizing that sharing common third-party trading partners encourages dyadic trade.
Methods. We analyze international trade data of 78 countries in 1975 and 1996, using cross-sectional and longitudinal regression.
Results. Regression analyses support our hypothesis. A BIC analysis suggests that the structural embeddedness variables significantly improve the model fit.
Conclusion. International exchange of commodities, like other social interactions, is shaped and constrained by structurally determined opportunities. Thus, an explanation of economic behavior, including trade, is not complete without reference to the triads in which a dyad is embedded.