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Intermediation and Economic Integration

Author

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  • Pol Antràs
  • Arnaud Costinot

Abstract

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.

Suggested Citation

  • Pol Antràs & Arnaud Costinot, 2010. "Intermediation and Economic Integration," NBER Working Papers 15751, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:15751
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    References listed on IDEAS

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    1. Robert C. Feenstra & Gordon H. Hanson, 2004. "Intermediaries in Entrepôt Trade: Hong Kong Re‐Exports of Chinese Goods," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 13(1), pages 3-35, March.
    2. 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.
    3. Pol Antràs & Arnaud Costinot, 2011. "Intermediated Trade," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 126(3), pages 1319-1374.
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    Cited by:

    1. Christian Volpe Martincus, 2016. "Out of the Border Labyrinth: An Assessment of Trade Facilitation Initiatives in Latin America and the Caribbean," IDB Publications (Books), Inter-American Development Bank, number 96856, February.
    2. William W. Olney, 2016. "Impact Of Corruption On Firm-Level Export Decisions," Economic Inquiry, Western Economic Association International, vol. 54(2), pages 1105-1127, April.
    3. Carballo, Jerónimo & Rodriguez Chatruc, Marisol & Salas Santa, Catalina & Volpe Martincus, Christian, 2022. "Online business platforms and international trade," Journal of International Economics, Elsevier, vol. 137(C).
    4. repec:idb:brikps:7994 is not listed on IDEAS
    5. Angela Cheptea & Charlotte Emlinger & Karine Latouche, 2012. "Multinational Retailers and Home Country Exports," Post-Print hal-01208840, HAL.
    6. Gabriele Camera & Lukas Hohl & Rolf Weder, 2019. "Breaking Up: Experimental Insights into Economic (Dis)Integration," Working Papers 19-25, Chapman University, Economic Science Institute.
    7. 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.
    8. Sandip Mitra & Dilip Mookherjee & Maximo Torero & Sujata Visaria, 2013. "Asymmetric Information and Middleman Margins: An Experiment with West Bengal Potato Farmers," Working Papers id:5545, eSocialSciences.
    9. Fauth Matthias & Jung Benjamin & Kohler Wilhelm, 2023. "German Firms in International Trade: Evidence from Recent Microdata," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 243(3-4), pages 199-284, June.
    10. Jerónimo Carballo & Georg Schaur & Christian Volpe Martincus, 2016. "Posts as Trade Facilitators," IDB Publications (Working Papers) 94576, Inter-American Development Bank.
    11. Pol Antràs & Arnaud Costinot, 2011. "Intermediated Trade," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 126(3), pages 1319-1374.
    12. Tadashi Ito & Yukiko Umeno Saito, 2021. "Indirect trade and direct trade: Evidence from Japanese firm transaction data," The World Economy, Wiley Blackwell, vol. 44(2), pages 444-461, February.
    13. Gabriel Felbermayr & Benjamin Jung, 2011. "Trade Intermediation and the Organization of Exporters," Review of International Economics, Wiley Blackwell, vol. 19(4), pages 634-648, September.
    14. Jennifer Abel-Koch, 2011. "Firm Size and the Choice of Export Mode," Working Papers 1105, Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz, revised 29 Mar 2011.
    15. Nunn, Nathan & Trefler, Daniel, 2014. "Domestic Institutions as a Source of Comparative Advantage," Handbook of International Economics, in: Gopinath, G. & Helpman, . & Rogoff, K. (ed.), Handbook of International Economics, edition 1, volume 4, chapter 0, pages 263-315, Elsevier.
    16. Patricia Sourdin & Richard Pomfret, 2012. "Trade Facilitation," Books, Edward Elgar Publishing, number 14596.
    17. Defever, Fabrice & Imbruno, Michele & Kneller, Richard, 2020. "Trade liberalization, input intermediaries and firm productivity: Evidence from China," Journal of International Economics, Elsevier, vol. 126(C).
    18. Daunfeldt, Sven-Olov & Engberg, Erik & Halvarsson, Daniel & Kokko, Ari & Tingvall, Patrik, 2019. "Wholesale firms: A catalyst for Swedish exports?," Ratio Working Papers 328, The Ratio Institute.
    19. Volpe Martincus, Christian, 2016. "Out of the Border Labyrinth: An Assessment of Trade Facilitation Initiatives in Latin America and the Caribbean," IDB Publications (Books), Inter-American Development Bank, number 7994, November.
    20. Carballo, Jerónimo & Schaur, Georg & Volpe Martincus, Christian, 2016. "Posts as Trade Facilitators," IDB Publications (Working Papers) 7681, Inter-American Development Bank.
    21. Matthias Aistleitner & Stephan Puehringer, 2023. "Biased Trade Narratives and Its Influence on Development Studies: A Multi-level Mixed-Method Approach," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 35(6), pages 1322-1346, December.

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    More about this item

    JEL classification:

    • D3 - Microeconomics - - Distribution
    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • F10 - International Economics - - Trade - - - General
    • F15 - International Economics - - Trade - - - Economic Integration
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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