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Networks and trade

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  • Bernard, Andrew B.
  • Moxnes, Andreas

Abstract

Trade occurs between firms both across borders and within countries, and the vast majority of trade transactions includes at least one large firm with many trading partners. This paper 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 which 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 a large number of unanswered empirical and theoretical questions.

Suggested Citation

  • Bernard, Andrew B. & Moxnes, Andreas, 2018. "Networks and trade," LSE Research Online Documents on Economics 88692, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:88692
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    File URL: http://eprints.lse.ac.uk/88692/
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    References listed on IDEAS

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    Cited by:

    1. Vasco M. Carvalho & Alireza Tahbaz-Salehi, 2019. "Production Networks: A Primer," Annual Review of Economics, Annual Reviews, vol. 11(1), pages 635-663, August.
    2. 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.

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    More about this item

    Keywords

    international trade; production networks; offshoring; productivity;
    All these keywords.

    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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