A new version of this entry is available:
Loading...
ResearchPaper
2009
Trade intermediation and the organization of exporters
Trade intermediation and the organization of exporters
Abstract (English)
The business literature shows that exporting rms typically require the help of foreign trade intermediaries or need to set up own foreign wholesale affiliates. In contrast, conventional trade theory models assume that producers can directly access foreign consumers. This paper models the endogenous emergence of intermediaries in an international trade model where producers differ with respect to productivity as well as regarding their varieties' perceived quality and tradability. We assume that trade intermediation is prone to frictions due to the absence of enorceable cross-country contracts while own wholesale subsidiaries require capital investment. We derive the sorting pattern of rms according to their degree of competitive advantage and show how the relative prevalence of intermediation depends on the degree of heterogeneity among producers, on the importance of market-specificity of goods, or on expropriation risk. We use US export data for 50 sectors and 133 destination countries to check the empirical validity of this predictions and find robust empirical support.
File is subject to an embargo until
This is a new version of:
Notes
Publication license
Publication series
Hohenheimer Diskussionsbeiträge; 309
Published in
Faculty
Faculty of Business, Economics and Social Sciences
Institute
Institut für Volkswirtschaftslehre (bis 2010)
Examination date
Supervisor
Edition / version
Citation
Identification
DOI
ISSN
ISBN
Language
English
Publisher
Publisher place
Classification (DDC)
330 Economics
Original object
Standardized keywords (GND)
BibTeX
@techreport{Felbermayr2009,
url = {https://hohpublica.uni-hohenheim.de/handle/123456789/5252},
author = {Felbermayr, Gabriel and Jung, Benjamin},
title = {Trade intermediation and the organization of exporters},
year = {2009},
school = {Universität Hohenheim},
series = {Hohenheimer Diskussionsbeiträge},
}