A Replication of “The Role of Intermediaries in Facilitating Trade” (Journal of International Economics, 2011)

Jianhua Duan, Xuefeng Qian (), Kuntal Das, Laura Meriluoto and W. Reed ()

Working Papers in Economics from University of Canterbury, Department of Economics and Finance

Abstract: This study replicates Ahn, Khandelwal, and Wei’s (2011) model of intermediary trade. Our study produces two main results. First, we are able to reproduce empirical evidence for AKW’s three main predictions for Chinese exports. This is impressive because much of the data for our replication are independently sourced. However, when we subject their model to additional tests, we find that the evidence is not robust. Using more recently available data to test their first prediction, we estimate coefficients that are wrong-signed and significant. When we re-analyze the evidence supporting their second and third predictions, we find that the full sample results mask significant heterogeneity across Chinese regions. In many cases, key coefficients are insignificant. In a few cases, they are wrong-signed and significant. Finally, using multiple versions of a key variable measuring the number of required import documents by country, we discover that the results are not robust across versions.

Keywords: Intermediaries; Exports; Productivity; Heterogeneous firms; China (search for similar items in EconPapers)
JEL-codes: F1 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2019-10-01
New Economics Papers: this item is included in nep-int and nep-tra
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Related works:
Journal Article: A replication of "The role of intermediaries in facilitating trade" (Journal of International Economics, 2011) (2020)
Working Paper: A replication of "The role of intermediaries in facilitating trade" (Journal of International Economics, 2011) (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:cbt:econwp:19/12

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