Networks, Firms, and Trade

Fixed costs associated with learning about demand and setting up distribution networks are expected to be lower when there are more potential contacts in the destination market, suggesting a greater probability of market entry and larger export revenues. The authors match historically-determined emi...

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Main Authors:	Bastos, Paulo, Silva, Joana
Format:	Policy Research Working Paper
Language:	en_US
Published:	World Bank, Washington, D.C. 2013
Subjects:	agriculture attributes bandwidth basic benchmark bilateral trade buyers collection of data components consumer preferences consumers customs customs clearance development policy distribution networks economic development elasticity elasticity of substitution ESP export export markets export performance export revenue exports Fixed costs Foreign Trade future research GDP per capita Globalization gross value industry productivity information networks information providers international trade manufacturing market entry market share marketing merchandise merchandise exports monopolistic competition Networks open access pc price index price level productivity real GDP reference result results ROM sales San Spring stocks total factor productivity total sales Trade liberalization universe uses utility function value added variable costs Web
Online Access:	http://hdl.handle.net/10986/16373

id	okr-10986-16373
recordtype	oai_dc
spelling	okr-10986-163732021-04-23T14:03:28Z Networks, Firms, and Trade Bastos, Paulo Silva, Joana agriculture attributes bandwidth basic benchmark bilateral trade buyers collection of data components consumer preferences consumers customs customs clearance development policy distribution networks economic development elasticity elasticity of substitution ESP export export markets export performance export revenue exports Fixed costs Foreign Trade future research GDP per capita Globalization gross value industry productivity information networks information providers international trade manufacturing market entry market share marketing merchandise merchandise exports monopolistic competition Networks open access pc price index price level productivity real GDP reference result results ROM sales San Spring stocks total factor productivity total sales Trade liberalization universe uses utility function value added variable costs Web Fixed costs associated with learning about demand and setting up distribution networks are expected to be lower when there are more potential contacts in the destination market, suggesting a greater probability of market entry and larger export revenues. The authors match historically-determined emigration stocks with detailed firm-level data from Portugal to examine the effect of migrant networks on these export outcomes. They find that larger stocks of emigrants in a given destination increase export participation and intensity. In addition, they show that the former of these effects tends to be more pronounced among firms that are more likely to have close ties with the emigrants. These results are consistent with a multiple-destination version of the Melitz (2003) model featuring market-specific entry costs and idiosyncratic firm-destination demand shocks. 2013-12-09T18:08:50Z 2013-12-09T18:08:50Z 2012-11 http://hdl.handle.net/10986/16373 en_US Policy Research Working Paper;No.6279 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, D.C. Publications & Research :: Policy Research Working Paper Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	en_US
topic	agriculture attributes bandwidth basic benchmark bilateral trade buyers collection of data components consumer preferences consumers customs customs clearance development policy distribution networks economic development elasticity elasticity of substitution ESP export export markets export performance export revenue exports Fixed costs Foreign Trade future research GDP per capita Globalization gross value industry productivity information networks information providers international trade manufacturing market entry market share marketing merchandise merchandise exports monopolistic competition Networks open access pc price index price level productivity real GDP reference result results ROM sales San Spring stocks total factor productivity total sales Trade liberalization universe uses utility function value added variable costs Web
spellingShingle	agriculture attributes bandwidth basic benchmark bilateral trade buyers collection of data components consumer preferences consumers customs customs clearance development policy distribution networks economic development elasticity elasticity of substitution ESP export export markets export performance export revenue exports Fixed costs Foreign Trade future research GDP per capita Globalization gross value industry productivity information networks information providers international trade manufacturing market entry market share marketing merchandise merchandise exports monopolistic competition Networks open access pc price index price level productivity real GDP reference result results ROM sales San Spring stocks total factor productivity total sales Trade liberalization universe uses utility function value added variable costs Web Bastos, Paulo Silva, Joana Networks, Firms, and Trade
relation	Policy Research Working Paper;No.6279
description	Fixed costs associated with learning about demand and setting up distribution networks are expected to be lower when there are more potential contacts in the destination market, suggesting a greater probability of market entry and larger export revenues. The authors match historically-determined emigration stocks with detailed firm-level data from Portugal to examine the effect of migrant networks on these export outcomes. They find that larger stocks of emigrants in a given destination increase export participation and intensity. In addition, they show that the former of these effects tends to be more pronounced among firms that are more likely to have close ties with the emigrants. These results are consistent with a multiple-destination version of the Melitz (2003) model featuring market-specific entry costs and idiosyncratic firm-destination demand shocks.
format	Publications & Research :: Policy Research Working Paper
author	Bastos, Paulo Silva, Joana
author_facet	Bastos, Paulo Silva, Joana
author_sort	Bastos, Paulo
title	Networks, Firms, and Trade
title_short	Networks, Firms, and Trade
title_full	Networks, Firms, and Trade
title_fullStr	Networks, Firms, and Trade
title_full_unstemmed	Networks, Firms, and Trade
title_sort	networks, firms, and trade
publisher	World Bank, Washington, D.C.
publishDate	2013
url	http://hdl.handle.net/10986/16373
_version_	1764433004887801856

Networks, Firms, and Trade

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