Search Externalities in Firm-to-Firm Trade
نویسندگان
چکیده
I develop a model of firm-to-firm search and matching to show that the impact falling trade costs on firm sourcing decisions consumer welfare depends relative size externalities in domestic international markets. These can be positive if firms share information about potential matches, or negative market is congested. Using unique transaction-level data from Uganda, document empirical evidence consistent with markets then build dynamic quantitative version that, 25% reduction led 3.7% increase welfare, 12% which was due externalities.
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ژورنال
عنوان ژورنال: IMF Working Papers
سال: 2021
ISSN: ['1018-5941', '2227-8885']
DOI: https://doi.org/10.5089/9781513572611.001