Advanced Search
MyIDEAS: Login to save this paper or follow this series

The Role of Intermediaries in Facilitating Trade

Contents:

Author Info

  • Shang-Jin Wei

    ()

  • Jaebin Ahn
  • Amit K. Khandelwal

Abstract

They are providing systematic evidence that intermediaries play an important role in facilitating trade using a firm-level the census of China's exports. Intermediaries account for around 20% of China's exports in 2005. This implies that many firms engage in trade without directly exporting products. We modify a heterogeneous firm model so that firms endogenously select their mode of export--either directly or indirectly through an intermediary. The model predicts that intermediaries will be relatively more important in markets that are more difficult to penetrate. They also provide empirical confirmation for this prediction, and generate new facts regarding the activity of intermediaries.[Working Paper No. 255]

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.esocialsciences.org/Download/repecDownload.aspx?fname=Document11462010360.8198511.pdf&fcategory=Articles&AId=2557&fref=repec
Our checks indicate that this address may not be valid because: 403 Forbidden. If this is indeed the case, please notify (Padma Prakash)
Download Restriction: no

Bibliographic Info

Paper provided by eSocialSciences in its series Working Papers with number id:2557.

as in new window
Length:
Date of creation: Jun 2010
Date of revision:
Handle: RePEc:ess:wpaper:id:2557

Note: Institutional Papers
Contact details of provider:
Web page: http://www.esocialsciences.org

Related research

Keywords: China; Intermediaries; Heterogeneous Firms; Middlemen; Trade Costs;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Andrew B. Bernard & J. Bradford Jensen & Stephen J. Redding & Peter K. Schott, 2007. "Firms in International Trade," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 21(3), pages 105-130, Summer.
  2. David Weinstein & Christian Broda, 2004. "Globalization and the Gains from Variety," 2004 Meeting Papers, Society for Economic Dynamics 530, Society for Economic Dynamics.
  3. Pol Antràs & Arnaud Costinot, 2011. "Intermediated Trade," The Quarterly Journal of Economics, Oxford University Press, Oxford University Press, vol. 126(3), pages 1319-1374.
  4. Spulber,Daniel F., 2009. "The Theory of the Firm," Cambridge Books, Cambridge University Press, Cambridge University Press, number 9780521736602.
  5. Gordon H. Hanson & Chong Xiang, 2008. "Testing the Melitz Model of Trade: An Application to U.S. Motion Picture Exports," NBER Working Papers, National Bureau of Economic Research, Inc 14461, National Bureau of Economic Research, Inc.
  6. James E. Anderson & Eric van Wincoop, 2001. "Gravity with Gravitas: A Solution to the Border Puzzle," NBER Working Papers, National Bureau of Economic Research, Inc 8079, National Bureau of Economic Research, Inc.
  7. Andrew B. Bernard & J. Bradford Jensen & Stephen J. Redding & Peter K. Schott, 2010. "Wholesalers and Retailers in U.S. Trade (Long Version)," NBER Working Papers, National Bureau of Economic Research, Inc 15660, National Bureau of Economic Research, Inc.
  8. Raymond Fisman & Peter Moustakerski & Shang-Jin Wei, 2008. "Outsourcing Tariff Evasion: A New Explanation for Entrep�t Trade," The Review of Economics and Statistics, MIT Press, MIT Press, vol. 90(3), pages 587-592, August.
  9. Raghuram G. Rajan & Luigi Zingales, . "Financial Dependence and Growth," CRSP working papers, Center for Research in Security Prices, Graduate School of Business, University of Chicago 344, Center for Research in Security Prices, Graduate School of Business, University of Chicago.
  10. Andrew B. Bernard & J. Bradford Jensen & Stephen J. Redding & Peter K. Schott, 2010. "Wholesalers and Retailers in US Trade," Working Paper Series, Peterson Institute for International Economics WP10-10, Peterson Institute for International Economics.
  11. Andrew B. Bernard & Stephen Redding & Peter K. Schott, 2006. "Multi-Product Firms and Trade Liberalization," CEP Discussion Papers, Centre for Economic Performance, LSE dp0769, Centre for Economic Performance, LSE.
  12. repec:bla:restud:v:77:y:2010:i:4:p:1450-1476 is not listed on IDEAS
  13. Pinelopi K. Goldberg & Amit Khandelwal & Nina Pavcnik & Petia Topalova, 2008. "Imported Intermediate Inputs and Domestic Product Growth: Evidence from India," NBER Working Papers, National Bureau of Economic Research, Inc 14416, National Bureau of Economic Research, Inc.
  14. Mark J. Melitz, 2002. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," NBER Working Papers, National Bureau of Economic Research, Inc 8881, National Bureau of Economic Research, Inc.
  15. Rubinstein, Yona & Helpman, Elhanan & Melitz, Marc, 2008. "Estimating Trade Flows: Trading Partners and Trading Volumes," Scholarly Articles, Harvard University Department of Economics 3228230, Harvard University Department of Economics.
  16. Andrew B. Bernard & J. Bradford Jensen & Peter K. Schott, 2009. "Importers, Exporters and Multinationals: A Portrait of Firms in the U.S. that Trade Goods," NBER Chapters, National Bureau of Economic Research, Inc, in: Producer Dynamics: New Evidence from Micro Data, pages 513-552 National Bureau of Economic Research, Inc.
  17. Zhi Wang & Shang-Jin Wei, 2010. "What Accounts for the Rising Sophistication of China's Exports?," NBER Chapters, National Bureau of Economic Research, Inc, in: China's Growing Role in World Trade, pages 63-104 National Bureau of Economic Research, Inc.
  18. Demidova, Svetlana, 2005. "Productivity Improvements and Falling Trade Costs: Boon or Bane?," Working Papers, Pennsylvania State University, Department of Economics 2-05-1, Pennsylvania State University, Department of Economics.
  19. Baldwin, Richard & Forslid, Rikard, 2004. "Trade Liberalization with Heterogenous Firms," CEPR Discussion Papers, C.E.P.R. Discussion Papers 4635, C.E.P.R. Discussion Papers.
  20. Fergal McCann, 2010. "Indirect Exporters," Working Papers, CEPII research center 2010-22, CEPII research center.
  21. Frankel, Jeffrey & Stein, Ernesto & Wei, Shang-jin, 1995. "Trading blocs and the Americas: The natural, the unnatural, and the super-natural," Journal of Development Economics, Elsevier, Elsevier, vol. 47(1), pages 61-95, June.
  22. James E. Rauch & Joel Watson, 2004. "Network Intermediaries in International Trade," Journal of Economics & Management Strategy, Wiley Blackwell, Wiley Blackwell, vol. 13(1), pages 69-93, 03.
  23. Fergal McCann, 2010. "Indirect exporters," Working Papers, HAL halshs-00963335, HAL.
  24. James E. Rauch & Vitor Trindade, 2002. "Ethnic Chinese Networks In International Trade," The Review of Economics and Statistics, MIT Press, MIT Press, vol. 84(1), pages 116-130, February.
  25. Mike W Peng & Anne Y Ilinitch, 1998. "Export Intermediary Firms: A Note on Export Development Research," Journal of International Business Studies, Palgrave Macmillan, Palgrave Macmillan, vol. 29(3), pages 609-620, September.
  26. Robert C. Feenstra & Gordon H. Hanson, 2004. "Intermediaries in Entrepot Trade: Hong Kong Re-Exports of Chinese Goods," Journal of Economics & Management Strategy, Wiley Blackwell, Wiley Blackwell, vol. 13(1), pages 3-35, 03.
  27. Volker Nocke & Stephen Yeaple, 2006. "Globalization and Endogenous Firm Scope," NBER Working Papers, National Bureau of Economic Research, Inc 12322, National Bureau of Economic Research, Inc.
  28. Jan De Loecker, 2007. "Product Differentiation, Multi-product Firms and Estimating the Impact of Trade Liberalization on Productivity," NBER Working Papers, National Bureau of Economic Research, Inc 13155, National Bureau of Economic Research, Inc.
  29. Amit Khandelwal, 2007. "The Long and Short (of) Quality Ladders," 2007 Meeting Papers, Society for Economic Dynamics 244, Society for Economic Dynamics.
  30. Fergal McCann, 2010. "Indirect exporters," PSE - G-MOND WORKING PAPERS, HAL halshs-00963335, HAL.
  31. Kalina Manova & Zhiwei Zhang, 2009. "China's Exporters and Importers: Firms, Products and Trade Partners," NBER Working Papers, National Bureau of Economic Research, Inc 15249, National Bureau of Economic Research, Inc.
  32. Akerman, Anders, 2010. "A Theory on the Role of Wholesalers in International Trade based on Economies of Scope," Research Papers in Economics, Stockholm University, Department of Economics 2010:1, Stockholm University, Department of Economics.
  33. Carsten Eckel & J Peter Neary, 2006. "Multi-Product Firms and Flexible Manufacturing in the Global Economy," Working Papers, School Of Economics, University College Dublin 200608, School Of Economics, University College Dublin.
  34. repec:bla:restud:v:77:y:2010:i:1:p:188-217 is not listed on IDEAS
  35. James Harrigan, 2009. "Comment on "Importers, Exporters and Multinationals: A Portrait of Firms in the U.S. that Trade Goods"," NBER Chapters, National Bureau of Economic Research, Inc, in: Producer Dynamics: New Evidence from Micro Data, pages 552-555 National Bureau of Economic Research, Inc.
  36. Timothy Dunne & J. Bradford Jensen & Mark J. Roberts, 2009. "Producer Dynamics: New Evidence from Micro Data," NBER Books, National Bureau of Economic Research, Inc, National Bureau of Economic Research, Inc, number dunn05-1.
  37. Yeaple, Stephen & Helpman, Elhanan & Melitz, Marc, 2004. "Export versus FDI with Heterogeneous Firms," Scholarly Articles, Harvard University Department of Economics 3229098, Harvard University Department of Economics.
  38. Greif, Avner, 1993. "Contract Enforceability and Economic Institutions in Early Trade: the Maghribi Traders' Coalition," American Economic Review, American Economic Association, American Economic Association, vol. 83(3), pages 525-48, June.
  39. Felbermayr, Gabriel J. & Jung, Benjamin, 2008. "Trade intermediaries, incomplete contracts, and the choice of export modes," Tübinger Diskussionsbeiträge, University of Tübingen, School of Business and Economics 317, University of Tübingen, School of Business and Economics.
  40. Jens Krüger, 2009. "How Do Firms Organize Trade? Evidence from Ghana," Kiel Advanced Studies Working Papers, Kiel Institute for the World Economy 449, Kiel Institute for the World Economy.
  41. Krugman, Paul, 1980. "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review, American Economic Association, American Economic Association, vol. 70(5), pages 950-59, December.
  42. Lardy,Nicholas R., 1993. "Foreign Trade and Economic Reform in China," Cambridge Books, Cambridge University Press, Cambridge University Press, number 9780521458351.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:ess:wpaper:id:2557. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Padma Prakash).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.