Intermediaries in international trade
Subtitle: direct versus indirect modes of export
By: Andrew B. Bernard, Marco Grazzi, Chiara Tomasi
Contributors: Grazzi, Marco, 1978-; Tomasi, Chiara, 1977-; National Bureau of Economic Research
Series: NBER working paper series -- working paper 17711; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 17711.
Publisher: National Bureau of Economic Research
Published: 2011
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "This paper examines the factors that give rise to intermediaries in exporting and explores the implications for trade volumes.  Export intermediaries such as wholesalers serve different markets and export different products than manufacturing exporters.  In particular, high market-specific fixed costs of exporting, the (lack of) quality of the general contracting environment and product-specific factors play important roles in explaining the existence of export intermediaries.  These underlying differences between direct and intermediary exporters have important consequences for trade flows.  The ability of export intermediaries to overcome country and product fixed costs means that they can more easily respond along the extensive margin to external shocks.  Intermediaries and direct exporters respond differently to exchange rate fluctuations both in terms of the total value of shipments and the number of products exported as well as in terms of prices and quantities.  Aggregate exports to destinations with high shares of indirect exports are much less responsive to changes in the real exchange rate than are exports to countries served primarily by direct exporters"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 2/28/2012.

Includes bibliographical references.

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