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Entrepreneurship in international trade

Author: James E Rauch; Joel Watson; National Bureau of Economic Research.
Publisher: Cambridge, MA. : National Bureau of Economic Research, ©2002.
Series: Working paper series (National Bureau of Economic Research), no. 8708.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Summary:
"Motivated by evidence on the importance of incomplete information and networks in international trade, we investigate the supply of 'network intermediation.' We hypothesize that the agents who become international trade intermediaries first accumulate networks of foreign contacts while working as employees in production or sales, then become entrepreneurs who sell access to and use of the networks they accumulated.  Read more...
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Genre/Form: Econometric models
Additional Physical Format: Print version:
Rauch, James E.
Entrepreneurship in international trade.
Cambridge, MA. : National Bureau of Economic Research, ©2002
(OCoLC)48993093
Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: James E Rauch; Joel Watson; National Bureau of Economic Research.
OCLC Number: 647149022
Reproduction Notes: Electronic reproduction. [S.l.] : HathiTrust Digital Library, 2010. MiAaHDL
Description: 1 online resource (31, [5] pages) : illustrations.
Details: Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002.
Series Title: Working paper series (National Bureau of Economic Research), no. 8708.
Responsibility: James E. Rauch, Joel Watson.

Abstract:

"Motivated by evidence on the importance of incomplete information and networks in international trade, we investigate the supply of 'network intermediation.' We hypothesize that the agents who become international trade intermediaries first accumulate networks of foreign contacts while working as employees in production or sales, then become entrepreneurs who sell access to and use of the networks they accumulated. We report supportive results regarding this hypothesis from a pilot survey of international trade intermediaries. We then build a simple general-equilibrium model of this type of entrepreneurship, and use it for comparative statics and welfare analysis. One welfare conclusion is that intermediaries may have inadequate incentives to maintain or expand their networks, suggesting a rationale for the policies followed by some countries to encourage large-scale trading companies that imitate the Japanese sogo shosha"--National Bureau of Economic Research web site.

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