NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The Network Structure of International Trade

Thomas Chaney

NBER Working Paper No. 16753
Issued in January 2011
NBER Program(s):   ITI

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.

download in pdf format
   (1411 K)

email paper

This paper is available as PDF (1411 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w16753

“The Network Structure of International Trade.” American Economic Review, forthcoming.

Users who downloaded this paper also downloaded these:
Hsieh and Ossa w16778 A Global View of Productivity Growth in China
Bloom, Draca, and Van Reenen w16717 Trade Induced Technical Change? The Impact of Chinese Imports on Innovation, IT and Productivity
Baldwin and Okubo w16660 International Trade, Offshoring and Heterogeneous Firms
Baldwin and Taglioni w16672 Gravity Chains: Estimating Bilateral Trade Flows When Parts And Components Trade Is Important
Simonovska and Waugh w16796 The Elasticity of Trade: Estimates and Evidence
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us