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On the Role of Import Intermediaries in Canada

Author

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  • Loretta Fung
  • Nicolas Schmitt

Abstract

This article empirically investigates the role of import intermediaries in Canada and discusses how public policies can affect them. Among the main results is that intermediaries are shown to play a very different role with respect to manufacturers and retailers regarding differentiated and complex products, but their role is qualitatively the same across North American Free Trade Agreement (NAFTA) and non-NAFTA countries, and the share of intermediaries' imports is always boosted by a greater mass of small domestic manufacturers and retailers. These results suggest that import wholesalers play an important role in the Canadian economy, especially with respect to domestic manufacturers, and that policy-makers should be mindful of policy impacts on this sector.

Suggested Citation

  • Loretta Fung & Nicolas Schmitt, 2024. "On the Role of Import Intermediaries in Canada," Canadian Public Policy, University of Toronto Press, vol. 50(1), pages 87-107, March.
  • Handle: RePEc:cpp:issued:v:50:y:2024:i:1:p:87-107
    DOI: 10.3138/cpp.2022-079
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    More about this item

    Keywords

    imports; wholesalers; manufacturers; retailers; product differentiation;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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