The Network Structure of International Trade

Thomas Chaney

American Economic Review, 2014, vol. 104, issue 11, 3600-3634

Abstract: Motivated by empirical evidence I uncover on the dynamics of French firms exports, I offer a novel theory of trade frictions. Firms only export into markets where they have a contact. They directly search for new trading partners, but also use their existing network of contacts to remotely search for new partners. I characterize the dynamic formation of an international network of exporters in this model. I structurally estimate this model on French data and confirm its predictions regarding the distribution of the number of foreign markets accessed by exporters and the geographic distribution of exports.

JEL-codes: D85 F11 F14 L24 (search for similar items in EconPapers)
Date: 2014
Note: DOI: 10.1257/aer.104.11.3600
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Citations: View citations in EconPapers (302)

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Related works:
Working Paper: The Network Structure of International Trade (2014)
Working Paper: The Network Structure of International Trade (2014)
Working Paper: The Network Structure of International Trade (2011)
Working Paper: The Network Structure of International Trade (2011)
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