O-Ring Production Networks

• 成果类型: Article
• 署名作者: Demir, Banu; Fieler, Ana Cecilia; Xu, Daniel Yi; Yang, Kelly Kaili
• 署名单位: University of Oxford; Ihsan Dogramaci Bilkent University; Centre for Economic Policy Research - UK; Yale University; National Bureau of Economic Research; Duke University; Indiana University System; Indiana University Bloomington
• 刊物名称: JOURNAL OF POLITICAL ECONOMY
• ISSN/ISSBN: 0022-3808
• DOI: 10.1086/725703
• 发表日期: 2024
• 页码: 200-247
• 关键词: EXPORT DESTINATIONS; ELEMENTARY THEORY; QUALITY; TRADE; prices; determinants; INVESTMENT; INEQUALITY; linkages; workers

摘要

We document strong skill matching in Turkish firms' production networks. Additionally, in the data, export demand shocks from rich countries increase firms' skill intensity and their trade with skill-intensive domestic partners. We explain these patterns using a quantitative model with heterogeneous firms, quality choices, and endogenous networks. A counterfactual economy-wide export demand shock of 5% leads both exporters and nonexporters to upgrade quality, raising the average wage by 1.2%. This effect is nine times the effect in a scenario without interconnected quality choices. We use the model to study the conditions for the success of export promotion policies.