In a model where upstream network insiders conduct relationship-specific investment, downstream firms have an incentive to transact within networks. Evidence from US auto parts exports to 26 auto-producing countries supports key predictions of the model. Greater production scale for assemblers...

This paper develops a model in which upstream network insiders' conduct relationship specific investment that induces the downstream firm to transact within networks. The scale of destination-country production and part-specific measures of the importance of network relationships and engineering...

Large firms played a central role in the "new trade" models that became a major focus of trade economists in the early 1980s. Subsequent literature for the most part kept imperfect competition but jettisoned oligopoly. Instead, as the heterogeneous firms literature burgeoned in the 2000s,...

Large firms played a central role in the “new trade” models that became a major focus of trade economists in the early 1980s. Subsequent literature for the most part kept imperfect competition but jettisoned oligopoly. Instead, as the heterogeneous firms literature burgeoned in the 2000s,...

In a model where upstream network insiders conduct relationship-specific investment, downstream firms have an incentive to transact within networks. Evidence from U.S. auto parts exports to 26 auto-producing countries supports key predictions of the model. Greater production scale for assemblers...