Publications [#378585] of Daniel Yi Xu

Journal Articles

1. Demir, B; Fieler, AC; Xu, DY; Yang, KK, O-Ring Production Networks, Journal of Political Economy, vol. 132 no. 1 (January, 2024), pp. 200-247 [doi]
   (last updated on 2026/01/19)

   Abstract:
   We document strong skill matching in Turkish firms’ production networks. Additionally, in the data, export demand shocks from rich countries increase firms’ skill intensity and their trade with skill-intensive domestic partners. We explain these patterns using a quantitative model with heterogeneous firms, quality choices, and endogenous networks. A counterfactual economy-wide export demand shock of 5% leads both exporters and nonexporters to upgrade quality, raising the average wage by 1.2%. This effect is nine times the effect in a scenario without interconnected quality choices. We use the model to study the conditions for the success of export promotion policies.