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Intermediation and Economic Integration

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  • Antràs, Pol
  • Costinot, Arnaud

Abstract

The theory of international trade has paid scant attention to market institutions. Neither neoclassical theory nor new trade models typically specify the process by which supply and demand meet. Yet in the real world, intermediaries play a central role in materializing the gains from exchange outlined by standard trade theories. In Antràs and Costinot (2010), we have developed a stylized but explicit model of intermediation in trade. In this short paper, we present a variant of this model that illustrates the potential role of intermediaries in facilitating the realization of the gains from trade.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 7697.

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Date of creation: Feb 2010
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Handle: RePEc:cpr:ceprdp:7697

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Keywords: economic integration; gains from trade; intermediation; search frictions;

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References

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  1. Marcel Fafchamps & Ruth Vargas Hill, 2005. "Selling at the Farmgate or Traveling to Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(3), pages 717-734.
  2. Antras, Pol & Costinot, Arnaud, 2011. "Intermediated Trade," Scholarly Articles 4784024, Harvard University Department of Economics.
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Cited by:
  1. Cheptea, Angela & Emlinger, Charlotte & Latouche, Karine, 2012. "Multinational Retailers and Home Country Exports," 2012: New Rules of Trade?, December 2012, San Diego, California 142777, International Agricultural Trade Research Consortium.
  2. Antràs, Pol & Costinot, Arnaud, 2010. "Intermediated Trade," CEPR Discussion Papers 7696, C.E.P.R. Discussion Papers.
  3. Felbermayr, Gabriel J. & Jung, Benjamin, 2011. "Trade intermediation and the organization of exporters," Tübinger Diskussionsbeiträge 331, University of Tübingen, School of Business and Economics.
  4. Jennifer Abel-Koch, 2011. "Firm Size and the Choice of Export Mode," Working Papers 1105, Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz, revised 29 Mar 2011.
  5. William W. Olney, 2013. "Impact of Corruption on Firm Level Export Decisions," Department of Economics Working Papers 2013-04, Department of Economics, Williams College.

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