Global production networks and imperfect competition

• 成果类型: Article
• 署名作者: Huang, Hanwei; Manova, Kalina; Perello, Oscar; Pisch, Frank
• 署名单位: City University of Hong Kong; University of London; University College London; Inter-American Development Bank; Technical University of Darmstadt; Centre for Economic Policy Research - UK; Leibniz Association; Ifo Institut; Tsinghua University; University of St Gallen
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2026.104315
• 发表日期: 2026
• 关键词: INTERNATIONAL-TRADE; intermediate inputs; MARKET; IMPACT; gains; geography; margins; welfare; shocks

摘要

How do production networks and market structure interact to shape the effects of trade and competition policy? We develop a model with two-sided firm heterogeneity, matching frictions, and imperfect supplier competition. More productive buyers match with more suppliers, inducing tougher supplier competition, lower input costs, and higher profits. Entry upstream thus benefits high-productivity buyers, while lower trade or matching costs favor mid-productivity buyers. Empirical evidence confirms that larger French and Chilean firms import higher quantities at lower prices as more Chinese suppliers enter, and that suppliers charge diversified buyers lower markups. We adapt methods for combinatorial, discrete-choice problems to estimate the model and perform counterfactuals. The interaction of endogenous networks and markups significantly amplifies the gains from policies that facilitate supplier entry or firm matching, and from deep trade agreements that combine tariff cuts with such policies. Fixed networks dampen while fixed markups amplify the gains from traditional tariff liberalization.