Moynihan Institute of Global Affairs
Trade, Development and Political Economy
Department of Economics, Boston University
This paper provides a theory and empirical evidence of how production networks are organized in space and how they shape the spatial distribution of economic activity. Consistent with stylized facts from administrative firm-to-firm transaction-level data from Chile, the authors model firms’ decision of forming a network of supplier and buyer relationships depending on their productivity and geographic location. By aggregating these decisions at the regional level, the authors provide a tractable characterization of the positive and normative properties of the general equilibrium. The authors calibrate the model to the observed domestic and international trade patterns and to the impacts of international trade shocks on domestic production networks in Chile. Counterfactual simulations of international trade shocks and transportation infrastructure reveal strong endogenous responses in the domestic production network, which significantly contribute to the heterogeneous welfare effects depending on the regions’ exposure to the domestic and global production network.
Professor Miyauchi is an assistant professor at the Department of Economics at Boston University. His primary research theme is to understand how socio-economic activity is shaped within cities and across regions. He tackles these questions using a combination of theory and new sources of granular data, such as cell phone, smartphone transaction data and firm-level transaction data. Prior to joining Boston University, he obtained my Ph.D in Economics from MIT in 2018, and was a post-doc at Asia-Pacific Research Center at Stanford University until 2019.
This event was published on October 21, 2021.