Firm Size and the Choice of Export Mode
In international trade models, it is typically assumed that manufacturers ship their goods directly to their foreign customers. In reality, however, many manufacturers call in trade intermediaries to perform this task for them. Which manufacturers make use of this option? Theory suggests that it is mostly the small firms which are not profitable enough to cover the high fixed costs of building an own distribution network abroad. Large and eefficient firms, on the contrary, prefer to export their goods directly. The present paper brings this hypothesis to a test. Using survey data from the World Bank Enterprise Survey conducted in Turkey in 2008, it shows that there is indeed a negative correlation between firm size and the relative importance of intermediated exports. This result is highly robust to the inclusion of a variety of controls, different estimation methods, and different measures of firm size.
|Date of creation:||29 Mar 2011|
|Date of revision:||29 Mar 2011|
|Contact details of provider:|| Postal: +49 6131 39-22223|
Phone: +49 6131 39-22223
Web page: http://wiwi.uni-mainz.de/index.html
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Pol Antrás & Arnaud Costinot, 2010.
"Intermediation and Economic Integration,"
American Economic Review,
American Economic Association, vol. 100(2), pages 424-28, May.
- Costinot, Arnaud & Antras, Pol, 2010. "Intermediation and Economic Integration," Scholarly Articles 4784026, Harvard University Department of Economics.
- Pol Antràs & Arnaud Costinot, 2010. "Intermediation and Economic Integration," NBER Working Papers 15751, National Bureau of Economic Research, Inc.
- Antràs, Pol & Costinot, Arnaud, 2010. "Intermediation and Economic Integration," CEPR Discussion Papers 7697, C.E.P.R. Discussion Papers.
- Antràs, Pol & Costinot, Arnaud, 2010.
CEPR Discussion Papers
7696, C.E.P.R. Discussion Papers.
When requesting a correction, please mention this item's handle: RePEc:jgu:wpaper:1105. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lehrstuhl Wälde)
If references are entirely missing, you can add them using this form.