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The Network Structure of International Trade

Listed author(s):
  • Thomas Chaney

    (Département d'économie)

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.

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Paper provided by Sciences Po in its series Sciences Po publications with number info:hdl:2441/7an8r1ubqs93caeqs80puld0tp.

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Date of creation: Nov 2014
Publication status: Published in American Economic Review, 2014, vol. 104, pp.3600-3634
Handle: RePEc:spo:wpmain:info:hdl:2441/7an8r1ubqs93caeqs80puld0tp
Contact details of provider: Web page: http://www.sciencespo.fr/

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