The Network Structure of International Trade

No 16753, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: I build a simple dynamic model of the formation of an international social network of importers and exporters. Firms can only export into markets in which they have a contact. They acquire new contacts both at random, and via their network of existing contacts. This model explains (i) the cross-sectional distribution of the number of foreign markets accessed by individual exporters, (ii) the cross-sectional geographic distribution of foreign contacts, and (iii) the dynamics of firm level exports. I show that the firm level dynamics of trade can explain the observed cross section of firm level exports. All theoretical predictions are supported by the data.

JEL-codes: D85 F1 (search for similar items in EconPapers)
Date: 2011-01
Note: ITI
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (62)

Published as Chaney, Thomas. 2014. "The Network Structure of International Trade." American Economic Review, 104(11): 3600-3634.

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Related works:
Journal Article: The Network Structure of International Trade (2014)
Working Paper: The Network Structure of International Trade (2014)
Working Paper: The Network Structure of International Trade (2014)
Working Paper: The Network Structure of International Trade (2011)
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