Erbahar, Aksel and Rebeyrol, Vincent (2023) Trade intermediation by producers. Journal of International Economics, vol. 140 (n° 103693).

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Identification Number : 10.1016/j.jinteco.2022.103693

Abstract

This paper shows that manufacturing exporters export goods that they have not produced and thus also act as trade intermediaries. The geographical dimension of the data reveals that almost half of these exports of “sourced” products are purely intermediated: to many destinations, firms export sourced products only. We find that this type of intermediation is ubiquitous across firms, products, and destinations, and is robust to a battery of alternative definitions. These findings show that trade intermediation by producers (TIP) is not solely driven by carry-along trade, where produced and sourced products are bundled when exported. Our decomposition of TIP highlights that trade intermediation should be identified at the firm-product-destination level. The prevalence of pure intermediation for all manufacturing exporters, including the largest ones, suggests that intermediation plays an important role in firms' participation and success in international markets.

Item Type: Article
Language: English
Date: January 2023
Refereed: Yes
JEL Classification: F12 - Models of Trade with Imperfect Competition and Scale Economies
F14 - Country and Industry Studies of Trade
L2 - Firm Objectives, Organization, and Behavior
Subjects: B- ECONOMIE ET FINANCE
Divisions: TSE-R (Toulouse)
Site: UT1
Date Deposited: 02 Dec 2022 12:49
Last Modified: 01 Feb 2024 02:42
OAI Identifier: oai:tse-fr.eu:127530
URI: https://publications.ut-capitole.fr/id/eprint/46466
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