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Networks and Trade

Author

Listed:
  • Andrew B. Bernard

    (Tuck School of Business, Dartmouth College, Hanover, New Hampshire 03755, USA)

  • Andreas Moxnes

    (Centre for Economic and Policy Research, London EC1V 0DX, United Kingdom)

Abstract

Trade occurs between firms both across borders and within countries, and most trade transactions include at least one large firm with many trading partners. This article reviews the literature on firm-to-firm connections in trade. A growing body of evidence coming from domestic and international transaction data has established empirical regularities that have inspired the development of new theories emphasizing firm heterogeneity among both buyers and suppliers in production networks. Theoretical work has considered both static and dynamic matching environments in a framework of many-to-many matching. The literature on trade and production networks is at an early stage, and there are many unanswered empirical and theoretical questions.

Suggested Citation

  • Andrew B. Bernard & Andreas Moxnes, 2018. "Networks and Trade," Annual Review of Economics, Annual Reviews, vol. 10(1), pages 65-85, August.
    • Handle: RePEc:anr:reveco:v:10:y:2018:p:65-85
    DOI: 10.1146/annurev-economics-080217-053506
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    Keywords

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    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm

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