Chinese government in international negotiations. Thus, at least in the trade sphere, the rise of China as a consumer market …

in a model of network formation with suppliers of heterogeneous productivity and matchability, buyers of heterogeneous … productivity, and intermediaries that reduce matching costs for a brokerage fee. Empirical evidence on trade activity across firms …

, calibrate it to the year 2000 using the World Input-Output Database, and perform a counterfactual analysis of China’s WTO … accession. We find that China's WTO entry accounts for about 45% of the decrease in China's value added exports to exports ratio … results imply that China's WTO accession was the driving force behind the strengthening of production networks with its …

-ups. Counterfactual analysis indicates that entry upstream benefits high-productivity buyers, while lower matching or trade costs benefit … all buyers, with the biggest boost to mid-productivity buyers. All three shocks generate sizeable welfare gains …

China and the specialization of several countries as secondary pivots. The densification of productive networks resulted …