Entrepreneurship in international trade
By: James E. Rauch, Joel Watson.
Contributors: Watson, Joel.; National Bureau of Economic Research.
Series: NBER working paper series ;; working paper  8708; Working paper series (National Bureau of Economic Research : Online) ;; working paper no.  8708.
Publisher: National Bureau of Economic Research
Published: 2002
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Subjects: International trade -- Econometric models; Entrepreneurship -- Econometric models
Description: "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.
Notes: Includes bibliographical references.
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