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Trade Intermediation and Resilience in Global Sourcing

Author

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  • Oscar Perelló

Abstract

I study the role of trade intermediaries in mitigating supply chain risk. Chilean intermediated imports rise and fewer firms import directly when origin-product risk increases. Firm-to-firm transactions reveal that intermediaries maintain larger and more stable supplier networks, while only larger producers diversify suppliers. I rationalize firms’ sourcing strategies in a model with matching costs and insecure supplier links. Intermediation lowers expected input costs despite brokerage fees, allowing producers to secure inputs without diversifying themselves. A 10 percent increase in global risk lowers operating profits by 3.5 percent and raises consumer prices by 0.9 percent. These losses nearly double without intermediation.

Suggested Citation

  • Oscar Perelló, 2026. "Trade Intermediation and Resilience in Global Sourcing," CESifo Working Paper Series 13046, CESifo.
    • Handle: RePEc:ces:ceswps:_13046
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    Keywords

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    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

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