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Indirect Exporters

  • Fergal McCann


Indirect exporters are defined as firms exporting through a trade intermediary. These firms have received rapidly expanding empirical and theoretical attention recently. I show that in Eastern Europe and Central Asia these firms do, as predicted by the theoretical literature, lie between domestic firms and direct exporters for a range of performance measures. Multi-product firms, despite their generally higher productivity, are shown to be more likely to use intermediaries than single-product firms, suggesting that “mixed exporting strategies” that use intermediaries are important for these firms. Analysis using a small panel subsample of the data suggests the sunk costs of indirect exporting are significantly lower than those for direct exporting, pointing to a role for intermediaries in “greasing the wheel” of entry to export markets. Copyright Springer Science+Business Media New York 2013

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Article provided by Springer in its journal Journal of Industry, Competition and Trade.

Volume (Year): 13 (2013)
Issue (Month): 4 (December)
Pages: 519-535

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Handle: RePEc:kap:jincot:v:13:y:2013:i:4:p:519-535
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