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This paper explores the benefits of firms participating in buyer networks that utilize the same locally produced inputs, demonstrating that such participation can lead to significant cost savings in intermediate inputs. The authors develop a trade model that incorporates vertical linkages and highlights the importance of efficient knowledge transmission within these networks, which can enhance firm profitability and competitiveness in local and export markets. Empirical evidence from Danish data supports th
- Author
- bailid697
- Language
- EN