Journal article
O-ring production networks
- Abstract:
- 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.
- Publication status:
- Published
- Peer review status:
- Peer reviewed
Actions
Access Document
- Files:
-
-
(Preview, Accepted manuscript, pdf, 1.7MB, Terms of use)
-
- Publisher copy:
- 10.1086/725703
Authors
- Publisher:
- University of Chicago Press
- Journal:
- Journal of Political Economy More from this journal
- Volume:
- 132
- Issue:
- 1
- Pages:
- 200-247
- Publication date:
- 2023-11-15
- Acceptance date:
- 2023-04-11
- DOI:
- EISSN:
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1537-534X
- ISSN:
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0022-3808
- Language:
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English
- Keywords:
- Pubs id:
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1339535
- Local pid:
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pubs:1339535
- Deposit date:
-
2023-05-02
Terms of use
- Copyright holder:
- The University of Chicago
- Copyright date:
- 2023
- Rights statement:
- © 2023 The University of Chicago. All Rights reserved.
- Notes:
- This is the accepted manuscript version of the article. The final version is available online from University of Chicago Press at https://dx.doi.org/10.1086/725703
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