01990cas a2200301 a 4500 AALejournalIMF021585 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513572611 1018-5941 BD-DhAAL BD-DhAAL Spray, John. Search Externalities in Firm-to-Firm Trade / John Spray. Washington, D.C. : International Monetary Fund, 2021. 1 online resource (80 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students I develop a model of firm-to-firm search and matching to show that the impact of falling trade costs on firm sourcing decisions and consumer welfare depends on the relative size of search externalities in domestic and international markets. These externalities can be positive if firms share information about potential matches, or negative if the market is congested. Using unique firm-to-firm transaction-level data from Uganda, I document empirical evidence consistent with positive externalities in international markets and negative externalities in domestic markets. I then build a dynamic quantitative version of the model and show that, in Uganda, a 25% reduction in trade costs led to a 3.7% increase in consumer welfare, 12% of which was due to search externalities. Mode of access: Internet Economic Integration imf Empirical Studies Of Trade imf Firm-To-Firm Trade imf Search-And-Matching imf Vat Data imf IMF Working Papers; Working Paper ; No. 2021/091 Full text available on IMF http://elibrary.imf.org/view/journals/001/2021/091/001.2021.issue-091-en.xml IMF e-Library