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Indirect exporters and importers

Author

Listed:
  • Marco Grazzi

    (University of Bologna)

  • Chiara Tomasi

    () (Università degli Studi di Trento
    Scuola Superiore S.Anna)

Abstract

Abstract This paper analyses the relation between firms’ productivity and the different modes of participation in international trade. In particular, it accounts for the possibility that firms can not only export their products, but also internationally source their inputs, either directly or indirectly. Using a cross section of firm level data for several advanced and developing economies, the study confirms the productivity-sorting prediction according to which domestic firms are less efficient than those that resort to an export intermediary, while the latter are less productive than producers which export directly. We show that the same sorting exists on the import side. By considering firms involved in both exporting and importing activities, we also find that direct two-way traders are on average more productive than firms trading indirectly on one of the two trade sides. The latter are in turn more efficient than indirect two-way traders. Finally, we investigate the effects of source-country characteristics on the sorting of firms into different modes of international trade.

Suggested Citation

  • 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.
  • Handle: RePEc:spr:weltar:v:152:y:2016:i:2:d:10.1007_s10290-016-0245-1
    DOI: 10.1007/s10290-016-0245-1
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    References listed on IDEAS

    as
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    Cited by:

    1. repec:spr:joevec:v:28:y:2018:i:1:d:10.1007_s00191-017-0523-7 is not listed on IDEAS
    2. S. Bolatto & M. Grazzi & C. Tomasi, 2017. "Export intermediaries and adjustments to exchange rate movements," Working Papers wp2004, Dipartimento Scienze Economiche, Universita' di Bologna.
    3. Marco Grazzi & Daniele Moschella, 2018. "Small, young, and exporters: New evidence on the determinants of firm growth," Journal of Evolutionary Economics, Springer, vol. 28(1), pages 125-152, January.

    More about this item

    Keywords

    Heterogeneous firms; Direct and indirect exports; Direct and indirect imports; Two-way traders; Intermediation;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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