Working Papers

Scale Economies in Customer Accumulation: Evidence from Matched Exporter-Importer Data

Abstract: This paper provides novel causal evidence of scale economies in customer accumulation in export markets. Using Danish firm-to-firm trade data, I show that a larger existing buyer base leads to more new buyer relationships. Specifically, one additional buyer match in the previous year leads to 0.2 new buyer matches. I establish causality by exploiting variation in exporters' access to export promotion services. Scale economies explain about half the total accumulation of buyers by Danish exporters and, hence, is an important driver of total export growth. These findings have important implications for the optimal design of trade policies: Matching new exporters to foreign importers should be a primary objective.

Growing Together and Apart: Scale Economies and Labor Specialization in Global Value Chains

With: Björn T. Arnarson, Andreas Moxnes, Jakob R. Munch, and Chong Xiang

Abstract: We study how firm growth reorganizes the division of labor across firms in global value chains. Using a novel dataset linking cross-border firm-to-firm transactions to matched employer–employee data, we show that demand shocks increase trade between firms while reducing occupational similarity, implying greater specialization. We develop and estimate a model of task outsourcing in which firms expand by reallocating tasks to suppliers. The model matches the data and implies endogenous scale economies. Eliminating outsourcing reduces average labor productivity by 25 percent and increases input costs by 10 percent, highlighting the central role of specialization in shaping firm performance.

Publications

Do Export Support Programs affect Prices, Quality, Markups and Marginal Costs? Evidence from a Natural Policy Experiment

The Review of Economics and Statistics 107, pp. 172-187, 2025 (WP version)

With: Jakob R. Munch, Joel Rodrigue, and Georg Schaur

Work in Progress

R&D Employment and Transmission in Trade and MNE Networks: Evidence from a R&D Tax Reform

With: Björn T. Arnarson, Jakob R. Munch, and Georg Schaur

Policy Relevant Information Frictions in Export Markets

With: Jakob R. Munch, Joel Rodrigue, and Georg Schaur

Risky Business: Export Finance Insurance and Trade

With: Thilo Kroeger, Kalina Manova, and Jakob R. Munch