Learning Trade Opportunities through Production Network

Using data on the Spanish firm-level production network we show that firmslearn about international trade opportunities and related business know-howfrom their production network peers. Our identification strategy leverages thepanel structure of the data, import origin variation, and network structure. Wefind evidence of both upstream and downstream network effects, even afteraccounting for sectoral and geographical spillovers. Larger firms are better atabsorbing valuable information but worse at disseminating it. Connections withgeographically distant firms provide more useful information to startimporting.