Granular Linkages, Supplier Cost Shocks & Export Performance
This paper presents evidence on the granular nature of firms' network of foreign suppliers and studies its implications for the impact of supplier shocks on domestic firms' performance. To demonstrate this, I use customs level information on transactions between Argentinean firms and foreign firms. I highlight two novel stylized facts: (i) the distribution of domestic firms' number of foreign suppliers is highly skewed with the median firm reporting linkages with only two, (ii) firms focus imported value on one top-supplier, even when controlling for firm size. Motivated by these facts I construct a theoretical framework of heterogeneous firms subject to search frictions in the market for foreign suppliers. Through a calibration exercise I study the framework's predictions and test them in the data using a shift-share identification strategy. Results present evidence of significant frictions in the market for foreign suppliers and strong import-export complementarities.
Code (0)
등록된 구현이 없습니다.
Similar Papers 제목 키워드 기반
Does an increase in the cost of imported inputs hurt exports? Evidence from firms' network of foreign suppliers
This paper examines the relationship between changes in the cost of imported inputs and export performance using a novel dataset from Argentina which identifies domestic firms' network of foreign suppliers. To guide my e…
The Resilience of FDI to Natural Disasters through Industrial Linkages
When do multinationals show resilience during natural disasters? To answer this, we develop a simple model in which foreign multinationals and local firms in the host country are interacted through input-output linkages.…
Heterogeneity in Sectoral Production and the Macro Effect of Sectoral Shocks
The effect of a negative sectoral shock on GDP depends on how important the shocked sector is as a direct and indirect supplier and how easily sectors can substitute inputs. Past estimates of the parameters that determin…
Macroeconomic Spillovers of Weather Shocks across U.S. States
We estimate the short-run effects of severe weather shocks on local economic activity and cross-border spillovers operating through economic linkages between U.S. states. We measure weather shocks using emergency declara…
Fruit shop management system project report.
The export maintenance system is a fully featured application that can help we manage fruit delivery business and achieve more control and information at a very low cost of total ownership. A fruit export maintains a…
Management