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Value network and high allowance factors

MARGINT
Our project proposes a new theoretical model that links firms' input shares to their productivity and their network. Our model is based on Antras et al. (2017) which formalizes trade in intermediate goods, and introduces an additional parameter : the firm's network. We show that firms with intermediate productivity need a strong network to access foreign markets, and their import share is a decreasing function of their productivity. We seek access to French data to calibrate our model.