Trade and Domestic Production Networks

Magne Mogstad, Emmanuel Dhyne, Ayumu Kikkawa and Felix Tintelnot
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Ayumu Kikkawa: University of Chicago

No 381, 2017 Meeting Papers from Society for Economic Dynamics

Abstract: In this paper we study how international trade affects firm efficiency and real wages in Belgium. Both in our theory and observed data firms trade with each other and external shocks transmit along the firm-to-firm production network. We first document the transmission of external trade shocks in reduced-form equations based on an exogenous network structure. We then develop and estimate a model of firm-to-firm trade, external trade, and endogenous network formation.

Date: 2017
New Economics Papers: this item is included in nep-int and nep-net
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Citations: View citations in EconPapers (22)

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Related works:
Journal Article: Trade and Domestic Production Networks (2021)
Working Paper: Trade and Domestic Production Networks (2018)
Working Paper: Trade and Domestic Production Networks (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:red:sed017:381

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