O-Ring Production Networks

Demir, Banu; Xu, Daniel Yi; Yang, Kelly Kaili

doi:10.3386/w28433

Cited by 22 publications

(9 citation statements)

References 43 publications

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“…24 The Brazilian Relação Anual de Informações Sociais and the Turkish Entrepreneur Information System (EIS) are administrative datasets. See Dix-Carneiro (2014) and Demir et al (2021) for a description of these data. We are extremely grateful to Wei Huang and Banu Demir for their very generous help with China's Urban Household Survey and with Turkey's EIS data, respectively.…”

Section: In Detail Inmentioning

confidence: 99%

Globalization, Trade Imbalances and Labor Market Adjustment

Dix-Carneiro¹,

Pessoa²,

Reyes-Heroles³

et al. 2021

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We argue that modeling trade imbalances is crucial to understanding transitional dynamics in response to globalization shocks. We build and estimate a general equilibrium, multi-country, multi-sector model of trade with two key ingredients: (a) endogenous trade imbalances arising from households' consumption and saving decisions; (b) labor market frictions across and within sectors. We use our model to perform several empirical exercises. We find that the "China shock" accounted for 25% of the decline in US manufacturing between 2000 and 2014-twice the magnitude predicted from a model imposing balanced trade. A concurrent rise in US service employment led to a negligible aggregate unemployment response. We then benchmark our model's predictions for the gains from trade against the popular "ACR" sufficient statistics approach. We find that our predictions for the long-run gains from trade and consumption dynamics significantly diverge.

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Section: In Detail Inmentioning

confidence: 99%

Globalization, Trade Imbalances and Labor Market Adjustment

Dix-Carneiro¹,

Pessoa²,

Reyes-Heroles³

et al. 2021

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“…Examples include Dhyne et al (2021) using data from Belgium to analyse the characteristics and positions of firms in the buyer-supplier networks. Demir et al (2021) using VAT declaration data from Turkey document the matching of firms in buyer-supplier networks, where skill-intensive buyers tend to buy inputs from similarly skill-intensive suppliers. Bernard et al (2019) apply detailed data on supplier-buyer networks to show the effects of the extension of high-speed train links in Japan on the number of supply chain links of firms, thereby underlining the importance of personal meetings in these relationships.…”

Section: Introductionmentioning

confidence: 99%

Joining and Exiting the Value Chain of Multinationals and the Performance of Suppliers: Evidence from Inter-Firm Transaction Data

Masso

Vahter

2021

SSRN Journal

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“…However, they do not look at the relationship between production networks and worker flows, the focus of our paper. Other papers which use similar datasets but focus on different questions include Demir et al (2018), who provide evidence of assortative matching in terms of products quality and worker skills along the production networks, and Alfaro- Urena et al (2019b), who assess the impact of multinational firms on workers in Cost Rica.…”

Section: Introductionmentioning

confidence: 99%

Worker Mobility and Domestic Production Networks

Cardoza¹,

Grigoli²,

Pierri³

et al. 2020

IMF Working Papers

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We show that domestic production networks shape worker flows between firms. Data on the universe of firm-to-firm transactions for the Dominican Republic, matched with employer-employee records, reveals that about 20 percent of workers who change firms move to a buyer or supplier of their original firm. This is a considerably larger share than would be implied by a random allocation of movers to firms. We find considerable gains associated with this form of hiring: higher worker wages, lower job separation rates, faster firm productivity growth, and faster coworker wage growth. Hiring workers from a supplier is followed by a rising share of purchases from that supplier. These findings indicate that human capital is easily transferable along the supply chain and that human capital accumulated while working at a firm is complementary with the intermediate products/services produced by that firm.

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O-Ring Production Networks

Cited by 22 publications

References 43 publications

Globalization, Trade Imbalances and Labor Market Adjustment

Globalization, Trade Imbalances and Labor Market Adjustment

Joining and Exiting the Value Chain of Multinationals and the Performance of Suppliers: Evidence from Inter-Firm Transaction Data

Worker Mobility and Domestic Production Networks

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