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Who Uses Intermediaries in International Trade? Evidence from Firm-level Survey Data

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  • Jennifer Abel-Koch

Abstract

The present paper uses data from the World Bank Enterprise Survey conducted in Turkey in 2005 to shed light on the firms which use intermediaries in international trade. It lends robust empirical support to recent theories which suggest that indirect exporters are mostly small firms which are not profitable enough to cover the high fixed costs of building their own distribution network abroad. Manufacturers which introduce entirely new products to foreign markets are more likely to use trade intermediaries, as are firms which produce low quality goods. In contrast, neither foreign ownership nor credit constraints are correlated with the choice of export mode. Moreover, firms which rely on trade intermediaries to sell their goods abroad also do so to source their foreign inputs, implying that the role of intermediaries in facilitating trade may be larger than previous studies suggest.
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  • Jennifer Abel-Koch, 2013. "Who Uses Intermediaries in International Trade? Evidence from Firm-level Survey Data," The World Economy, Wiley Blackwell, vol. 36(8), pages 1041-1064, August.
  • Handle: RePEc:bla:worlde:v:36:y:2013:i:8:p:1041-1064
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    Citations

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    Cited by:

    1. Ronald Davies & Tine Jeppesen, 2015. "Export mode, firm heterogeneity, and source country characteristics," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 151(2), pages 169-195, May.
    2. Ruiz, Edward, 2014. "Elección de los modos de exportación: Evidencia de empresas peruanas," Revista Estudios Económicos, Banco Central de Reserva del Perú, issue 28, pages 61-76.
    3. Jonathan Timmis, 2013. "Internet Adoption and Firm Exports in Developing Economies," Discussion Papers 2013-05, University of Nottingham, GEP.
    4. repec:kap:empiri:v:45:y:2018:i:2:d:10.1007_s10663-016-9361-3 is not listed on IDEAS
    5. Li, Min & He, Xinming & Sousa, Carlos M.P., 2017. "A review of the empirical research on export channel selection between 1979 and 2015," International Business Review, Elsevier, vol. 26(2), pages 303-323.
    6. Dasgupta, Kunal & Mondria, Jordi, 2018. "Quality uncertainty and intermediation in international trade," European Economic Review, Elsevier, vol. 104(C), pages 68-91.
    7. Raff, Horst & Trofimenko, Natalia, 2013. "World market access of emerging-market firms: The role of foreign ownership and access to external finance," Kiel Working Papers 1848, Kiel Institute for the World Economy (IfW).
    8. Coşar, A. Kerem & Demir, Banu, 2016. "Domestic road infrastructure and international trade: Evidence from Turkey," Journal of Development Economics, Elsevier, vol. 118(C), pages 232-244.
    9. repec:bla:worlde:v:40:y:2017:i:12:p:2543-2563 is not listed on IDEAS
    10. Marco Grazzi & Chiara Tomasi, 2014. "Productivity Sorting and Mode of Export," LEM Papers Series 2014/25, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    11. Emmanuel Dhyne & Stela Rubínová, 2016. "The supplier network of exporters : Connecting the dots," Working Paper Research 296, National Bank of Belgium.
    12. Dominik Boddin & Horst Raff & Natalia Trofimenko, 2017. "Foreign ownership and the export and import propensities of developing-country firms," The World Economy, Wiley Blackwell, vol. 40(12), pages 2543-2563, December.
    13. Marco Grazzi & Chiara Tomasi, 2016. "Indirect exporters and importers," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 152(2), pages 251-281, May.
    14. Ruiz, Manuel, 2014. "Elección de los Modos de Exportación: Evidencia de Empresas Peruanas," Working Papers 2014-004, Banco Central de Reserva del Perú.
    15. repec:bla:ecinqu:v:55:y:2017:i:2:p:778-793 is not listed on IDEAS
    16. Jackie M.L. Chan, 2015. "Trade Intermediation, Financial Frictions, and the Gains from Trade," Discussion Papers 15-009, Stanford Institute for Economic Policy Research.

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