Work

Intermediaries in International Trade: Products and Destinations

Year: 2014

Type: article

Abstract: This paper examines the factors that give rise to intermediaries in exporting and explores the implications for trade volumes. Export intermediaries such as wholesalers serve different markets and export different products than manufacturing exporters do. Wholesalers are more prevalent in markets with higher destination-specific fixed costs and focus on products that are less differentiated, have lower contract intensity, and have large sunk entry costs. Aggregate exports to destinations with high shares of indirect exports are less responsive to changes in the real exchange rate than are exports to markets served primarily by direct exporters.

Source: The Review of Economics and Statistics

DOI: 10.1162/rest_a_00495

Authors: Andrew B. Bernard, Marco Grazzi, Chiara Tomasi

Institutions: Center for Economic and Policy Research, National Bureau of Economic Research, University of Bologna, Scuola Superiore Sant'Anna, University of Trento

Language: English

Topic: Global trade and economics

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: green

Funders: European Commission, Provincia Autonoma di Trento, Sixth Framework Programme, Economic and Social Research Council

Award: G4880584255