Business and Social Networks in International Trade
Rauch, JamesE. 2001. "Business and Social Networks in International Trade."
Journal of Economic Literature,
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.
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Rauch, James E. (U CA, San Diego)
L14: Transactional Relationships; Contracts and Reputation; Networks
F23: Multinational Firms; International Business
O19: International Linkages to Development; Role of International Organizations