Beefing Up the Service Sector: Commodity Export Booms and Production Network Spillovers

Francesco Amodio, Giorgio Chiovelli and Serafin Frache

No 20078, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: We show that commodity export booms can propagate up the value chain, reshape production networks, and promote growth in the service sector. We study Uruguay’s beef export boom to China in the 2010s, combining customs, firm-to-firm transactions, employer-employee, and balance sheet data. Firms more linked to exporters experienced higher sales, especially in services, with associated gains in employment, wages, and sales per worker. Aggregate sales rose by 1.79%, with each export dollar generating 46 more cents in domestic sales, 10 cents in services. Over time, service firms reoriented their connections toward beef exporters, amplifying their gains from trade.

Keywords: Commodity exports; Production network; Services; China shock (search for similar items in EconPapers)
JEL-codes: F14 L14 O14 O54 (search for similar items in EconPapers)
Date: 2025-03
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Working Paper: Beefing Up the Service Sector: Commodity Export Booms and Production Network Spillovers (2025)
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