Resource title

Intermediation in Foreign Trade: When do Exporters Rely on Intermediaries?

Resource image

image for OpenScout resource :: Intermediation in Foreign Trade: When do Exporters Rely on Intermediaries?

Resource description

The paper explores theoretically and empirically why trade intermediaries (TIs) are frequently used as agents for exports to some countries but not to others. We adapt a standard intra-industry trade model with variable export costs (e.g. transport) and fixed export costs (e.g. market access) to include a TI that is able to pool market access cost. From this framework explanatory factors for the TI share in a country?s exports are derived and subsequently tested with a new data set based on French customs information. The paper finds that: (i) higher market access costs increase the TI share, (ii) smaller export markets feature a larger TI share, (iii) the TI share is independent from variable (distance-dependent) export costs.

Resource author

Philipp J. H. Schröder, Harald Trabold, Parvati Trübswetter

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/18072

Resource license

Adapt according to the presented license agreement and reference the original author.