The Aggregate Welfare and Trade Implications of Contracting Frictions in Global Sourcing

For their valuable comments, we thank Pol Antràs, Andy Bernard, Emily Blanchard, Johannes Boehm, Andrés Rodríguez-Clare, Farid Farrokhi, Andrei Levchenko, Michael Sposi, Dan Trefler, Zi Wang, and audiences at the SAET Annual Conference, Danish International Economics Workshop, NBER ITI Summer Institute, CEPR GVC Conference, AEA Annual Meetings, Korea Economic Review International Conference, Dartmouth, Princeton, World Bank, Simon Fraser University, Tokyo University, Southern Methodist University, Hong Kong universities online trade seminar, Maryland, George Washington, CUHK Shenzhen, Peking University, University of Virginia, Singapore Management University, Groningen, Southeast University, Saint Louis Fed, UNC Chapel Hill, and Purdue. Tong Ni provided excellent research assistance. All errors are our own. Both authors individually attest to have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.