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Business and Social Networks in International Trade

James E. Rauch

Department of Economics, University of California, San Diego

Journal of Economic Literature 2001

The first two main sections survey the roles of transnational networks in alleviating problems of contract enforcement and providing information about trading opportunities, respectively. The next section covers how domestic networks influence international trade through their impact on domestic market structure. Two overarching questions unify these sections: how do networks affect efficiency, and will networks grow or shrink in importance for international trade over time. The last main sections develop research agendas for two less studied areas: the role of intermediaries who can connect foreign agents to domestic networks and the ability of transnational production networks to facilitate technology transfer.

DOI
10.1257/jel.39.4.1177
Volume
39 (4)
Pages
1177-1203
Language
en
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