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The Network Structure of International Trade

Chaney, Thomas (2014) The Network Structure of International Trade. American Economic Review (AER), vol. 104 (n° 11). pp. 3600-3634.

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Identification Number : 10.1257/aer.104.11.3600


Motivated by empirical evidence I uncover on the dynamics of French firms exports, I offer a novel theory of trade frictions. Firms only export into markets where they have a contact. They directly search for new trading partners, but also use their exist- ing network of contacts to remotely search for new partners. I characterize the dynamic formation of an international network of exporters in this model. I structurally estimate this model on French data and confirm its predictions regarding (i) the cross- sectional distribution of the number of foreign markets accessed by exporters and (ii) the cross-sectional geographic distribution of exports.

Item Type: Article
Language: English
Date: November 2014
Refereed: Yes
JEL Classification: C15 - Simulation Methods
D85 - Network Formation and Analysis - Theory
F1 - Trade
Divisions: TSE-R (Toulouse)
Site: UT1
Date Deposited: 16 Mar 2015 14:29
Last Modified: 02 Apr 2021 15:49
OAI Identifier:

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