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