Isabelle Méjean

Séminaires généraux
amse seminar

Isabelle Méjean

SciencesPo
Frictions and adjustments in firm-to-firm trade
Co-écrit avec
François Fontaine, Julien Martin
Lieu

IBD Amphi

Îlot Bernard du Bois - Amphithéâtre

AMU - AMSE
5-9 boulevard Maurice Bourdet
13001 Marseille

Date(s)
Lundi 12 février 2024| 11:30 - 12:45
Contact(s)

Nicolas Clootens : nicolas.clootens[at]univ-amu.fr
Romain Ferrali : romain.ferrali[at]univ-amu.fr

Résumé

We build a dynamic Ricardian model of trade with search frictions. The model generates an endogenous network of firm-to-firm trade relationships and price bargaining within and across relationships. Following a foreign shock, firms sourcing inputs from abroad have three options: absorb the shock, renegotiate with their current supplier or switch to a supplier in another country. The size of these adjustment margins depends on the interplay between Ricardian comparative advantages, search frictions and firms’ individual characteristics. We exploit French firm-to-firm trade data to estimate the model structurally and quantify the relative importance of these adjustment margins at sector-country level.