The Network Structure of International Trade

Thomas Chaney

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Abstract: Motivated by empirical evidence I uncover on the dynamics of French firms' exports, I offer a novel theory of trade frictions. Firms export only into markets where they have a contact. They search directly for new trading partners, but also use their existing network of contacts to search remotely for new partners. I characterize the dynamic formation of an international network of exporters in this model. Structurally, I 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.

Date: 2014-11
Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-03579668
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Published in American Economic Review, 2014, 104 (11), pp.3600 - 3634. ⟨10.1257/aer.104.11⟩

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Related works:
Journal Article: 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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Persistent link: https://EconPapers.repec.org/RePEc:hal:spmain:hal-03579668

DOI: 10.1257/aer.104.11

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