Working Papers

Network Effects in Export Markets: Evidence from Matched Exporter-Importer Data

Abstract: This paper provides novel causal evidence of network effects in export markets. Using Danish firm-to-firm trade data, I show that a larger existing buyer network 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. I complement the direct, causal evidence with indirect, correlational evidence based on observed price variation both in the cross-section and over time. Network effects 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.

Publications

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

Accepted by The Review of Economics and Statistics

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

Work in Progress

Information Frictions and Export Dynamics

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

Abstract: This paper presents and structurally estimates a model of endogenous firm-level exporting and growth under informational frictions, which can be partially alleviated through government export support programs. We find (i) informational frictions are substantive barriers to entry and growth, (ii) government export support programs significantly mitigate such frictions but need to be targeted appropriately, (iii) the primary benefit from export support programs is allowing exporters to match with higher quality buyers in foreign markets.

No Guarantees, No Finance, No Trade: Export Credit Insurance and its Role in International Trade

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

The Origins of Scale Economies: Evidence from Firm-to-Firm Trade

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

The Global Benefits of Export Promotion

With: Trang Hoang and Joel Rodrigue