Learning Trade Opportunities through Production Network

Kenan Huremovic, Federico Nurarelli, Francesco Serti and Fernando Vega-Redondo

UC3M Working papers. Economics from Universidad Carlos III de Madrid. Departamento de Economía

Abstract: Using data on the Spanish firm-level production network we show that firmslearn about international trade opportunities and related business know-how from their production network peers. Our identification strategy leverages the panel structure of the data, import origin variation, and network structure. We find evidence of both upstream and downstream network effects, even after accounting for sectoral and geographical spillovers. Larger firms are better at absorbing valuable information but worse at disseminating it. Connections with geographically distant firms provide more useful information to start importing.

Keywords: Production; Network; Learning; Spillovers; Import (search for similar items in EconPapers)
Date: 2024-06-06
New Economics Papers: this item is included in nep-bec and nep-int
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Persistent link: https://EconPapers.repec.org/RePEc:cte:werepe:43951

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