Demir, BanuFieler, Ana CeciliaXu, Daniel YiYang, Kelly Kaili2025-02-252025-02-252024-01-010022-3808https://hdl.handle.net/11693/116846We 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.EnglishCC BY 4.0 (Attribution 4.0 International Deed)https://creativecommons.org/licenses/by/4.0/Export destinationsElementary theoryQualityTradePricesDeterminantsInvestmentInequalityLinkagesWorkersArticle10.1086/7257031537-534X