Search Externalities in Firm-to-Firm Trade /

I develop a model of firm-to-firm search and matching to show that the impact of falling trade costs on firm sourcing decisions and consumer welfare depends on the relative size of search externalities in domestic and international markets. These externalities can be positive if firms share informat...

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Detalhes bibliográficos
Autor principal: Spray, John
Formato: Periódico
Idioma:English
Publicado em: Washington, D.C. : International Monetary Fund, 2021.
Colecção:IMF Working Papers; Working Paper ; No. 2021/091
Assuntos:
Acesso em linha:Full text available on IMF
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520 3 |a I develop a model of firm-to-firm search and matching to show that the impact of falling trade costs on firm sourcing decisions and consumer welfare depends on the relative size of search externalities in domestic and international markets. These externalities can be positive if firms share information about potential matches, or negative if the market is congested. Using unique firm-to-firm transaction-level data from Uganda, I document empirical evidence consistent with positive externalities in international markets and negative externalities in domestic markets. I then build a dynamic quantitative version of the model and show that, in Uganda, a 25% reduction in trade costs led to a 3.7% increase in consumer welfare, 12% of which was due to search externalities. 
538 |a Mode of access: Internet 
650 7 |a Economic Integration  |2 imf 
650 7 |a Empirical Studies Of Trade  |2 imf 
650 7 |a Firm-To-Firm Trade  |2 imf 
650 7 |a Search-And-Matching  |2 imf 
650 7 |a Vat Data  |2 imf 
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