We investigate whether network closure in the supply chain can explain the heterogeneity observed in import premia. Using unique panel data on trade flows among beef farms in the Italian region of Piedmont, we analyze a purely sequential supply chain characterized by the co-existence of two competing production systems: domestic cattle, of lower quality and less risky, and imported cattle, of higher quality and exposed to higher risks. Our findings indicate that trust and mutual cooperation, computed in terms of network closure, are associated with increasing gains from imports and may promote the use and investment in inputs of superior quality

Does “Network Closure” Beef up Import Premium?

Francesco Serti
2018-01-01

Abstract

We investigate whether network closure in the supply chain can explain the heterogeneity observed in import premia. Using unique panel data on trade flows among beef farms in the Italian region of Piedmont, we analyze a purely sequential supply chain characterized by the co-existence of two competing production systems: domestic cattle, of lower quality and less risky, and imported cattle, of higher quality and exposed to higher risks. Our findings indicate that trust and mutual cooperation, computed in terms of network closure, are associated with increasing gains from imports and may promote the use and investment in inputs of superior quality
File in questo prodotto:
File Dimensione Formato  
(11) Does Network Closure Beef up Import Premium.pdf

accesso aperto

Tipologia: Versione Editoriale (PDF)
Licenza: Nessuna licenza
Dimensione 891.35 kB
Formato Adobe PDF
891.35 kB Adobe PDF Visualizza/Apri

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/20.500.11771/12277
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus ND
social impact