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http://hdl.handle.net/10419/18072
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| Title: | | Intermediation in Foreign Trade: When do Exporters Rely on Intermediaries?  |
| Authors: | | Schröder, Philipp J. H. Trabold, Harald Trübswetter, Parvati |
| Issue Date: | | 2003 |
| Series/Report no.: | | DIW-Diskussionspapiere 336 |
| Abstract: | | 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. |
| Subjects: | | trade intermediation indirect exports transaction costs monopolistic competition |
| JEL: | | F15 F12 F23 F10 D23 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Publikationen von Forscherinnen und Forschern des DIW DIW-Diskussionspapiere
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