Information frictions, technology adoption, and firm-to-firm linkages
This project completes an IGC-funded study that examines how search costs limit firm-to-firm matching and tests trade fairs as a solution. The study uses a randomised trial at a large fisheries fair in Chile to evaluate the impact on business connections, productivity, growth, and technology adoption, as well as diffusion through the production network. The findings are significant as information frictions often prevent smaller firms, particularly those run by lower-income owners, from establishing the firm-to-firm connections that drive growth.
