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Learning Trade Opportunities through Production Network

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  • Huremovic, Kenan
  • Nurarelli, Federico
  • Serti, Francesco
  • Vega-Redondo, Fernando

Abstract

Using data on the Spanish firm-level production network we show that firmslearn about international trade opportunities and related business know-how from their production network peers. Our identification strategy leverages the panel structure of the data, import origin variation, and network structure. We find evidence of both upstream and downstream network effects, even after accounting for sectoral and geographical spillovers. Larger firms are better at absorbing valuable information but worse at disseminating it. Connections with geographically distant firms provide more useful information to start importing.

Suggested Citation

  • Huremovic, Kenan & Nurarelli, Federico & Serti, Francesco & Vega-Redondo, Fernando, 2024. "Learning Trade Opportunities through Production Network," UC3M Working papers. Economics 43951, Universidad Carlos III de Madrid. Departamento de Economía.
    • Handle: RePEc:cte:werepe:43951
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