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Indirect exporters and importers

Author

Listed:
  • M. Grazzi
  • C.Tomasi

Abstract

This paper analyses the relation between firms' productivity and the different modes of participation to international trade. In particular, we account 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 resorting to an export intermediary, while the latter are less productive than producers which export directly. We show that the same sorting exists also on the import side. Finally, we investigate the effects of source country characteristics on the sorting of firms into different modes of international trade.

Suggested Citation

  • M. Grazzi & C.Tomasi, 2015. "Indirect exporters and importers," Working Papers wp1005, Dipartimento Scienze Economiche, Universita' di Bologna.
    • Handle: RePEc:bol:bodewp:wp1005
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    References listed on IDEAS

    as
    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, vol. 21(3), pages 105-130, Summer.
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    26. Anders Akerman, 2018. "A theory on the role of wholesalers in international trade based on economies of scope," Canadian Journal of Economics, Canadian Economics Association, vol. 51(1), pages 156-185, February.
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    Citations

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    Cited by:

    1. S. Bolatto & M. Grazzi & C. Tomasi, 2017. "Export intermediaries and adjustments to exchange rate movements," Working Papers wp2004, Dipartimento Scienze Economiche, Universita' di Bologna.
    2. repec:spr:joevec:v:28:y:2018:i:1:d:10.1007_s00191-017-0523-7 is not listed on IDEAS
    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

    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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