Intermediation and Economic Integration
The theory of international trade has paid scant attention to market institutions. Neither neoclassical theory nor new trade models typically specify the process by which supply and demand meet. Yet in the real world, intermediaries play a central role in materializing the gains from exchange outlined by standard trade theories. In Antràs and Costinot (2010), we have developed a stylized but explicit model of intermediation in trade. In this short paper, we present a variant of this model that illustrates the potential role of intermediaries in facilitating the realization of the gains from trade.
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References listed on IDEAS
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- Robert C. Feenstra & Gordon H. Hanson, 2004.
"Intermediaries in Entrepot Trade: Hong Kong Re-Exports of Chinese Goods,"
Journal of Economics & Management Strategy,
Wiley Blackwell, vol. 13(1), pages 3-35, 03.
- Gordon H. Hanson & Robert C. Feenstra, 2001. "Intermediaries in Entrepot Trade: Hong Kong Re-Exports of Chinese Goods," NBER Working Papers 8088, National Bureau of Economic Research, Inc.
- Marcel Fafchamps & Ruth Vargas Hill, 2005.
"Selling at the Farmgate or Traveling to Market,"
American Journal of Agricultural Economics,
Agricultural and Applied Economics Association, vol. 87(3), pages 717-734.
- Pol Antràs & Arnaud Costinot, 2011.
The Quarterly Journal of Economics,
Oxford University Press, vol. 126(3), pages 1319-1374.
- Pol Antràs & Arnaud Costinot, 2010. "Intermediated Trade," NBER Working Papers 15750, National Bureau of Economic Research, Inc.
- Antràs, Pol & Costinot, Arnaud, 2010. "Intermediated Trade," CEPR Discussion Papers 7696, C.E.P.R. Discussion Papers.
- Antras, Pol & Costinot, Arnaud, 2011. "Intermediated Trade," Scholarly Articles 4784024, Harvard University Department of Economics.
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