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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
    as

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    File URL: https://doi.org/10.1146/annurev-economics-080217-053506
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    References listed on IDEAS

    as
    1. Ryan Monarch, 2014. ""It's Not You, It's Me": Breakup In U.S.-China Trade Relationships," Working Papers 14-08, Center for Economic Studies, U.S. Census Bureau.
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    7. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
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    12. Andrew B. Bernard & Esther Ann Bøler & Swati Dhingra, 2018. "Firm-to-Firm Connections in Colombian Imports," CEP Discussion Papers dp1543, Centre for Economic Performance, LSE.
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    Citations

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    Cited by:

    1. Shibi He & Volodymyr Lugovskyy, 2018. "Domestic Spillovers and Foreign Networks in Exporting," CAEPR Working Papers 2018-005, Center for Applied Economics and Policy Research, Department of Economics, Indiana University Bloomington.
    2. Carvalho, Vasco M & Tahbaz-Salehi, Alireza, 2018. "Production Networks: A Primer," CEPR Discussion Papers 13421, C.E.P.R. Discussion Papers.

    More about this item

    Keywords

    international trade; offshoring; production networks; productivity;

    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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