Evaluation of Latvia’s re-exports using firm-level trade data

Konstantins Benkovskis, Santa Berzina () and Liva Zorgenfreija ()
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Santa Berzina: Monetary Policy Department, Bank of Latvia, Riga, Latvia
Liva Zorgenfreija: Monetary Policy Department, Bank of Latvia, Riga, Latvia

Baltic Journal of Economics, 2016, vol. 16, issue 1, 1-20

Abstract: We use an anonymized firm-level trade database provided by the Central Statistical Bureau of Latvia to evaluate Latvia's re-exports. By solving a linear maximization problem for each firm-product pair, we obtain estimates of re-export flows and corresponding re-export mark-ups. We find that the share of-re-export flows in the total merchandise exports and imports is significant and follows an increasing trend. The share of re-exports is especially large in such product groups as transport vehicles, plastics, mineral products, and machinery and electrical equipments. The majority of re-export flows are directed to closest neighbours - Lithuania and Estonia - suggesting that Latvia serves as a sort of a regional transport hub. We also find that average re-export mark-ups are sizeable and re-export operations may provide an important contribution to Latvia’s GDP.

Keywords: Firm-level data; Latvia; re-exports; simplex (search for similar items in EconPapers)
JEL-codes: D22 F14 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (10)

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http://www.tandfonline.com/doi/full/10.1080/1406099X.2016.1163891 (application/pdf)

Related works:
Working Paper: Evaluation of Latvia's Re-Exports Using Firm-Level Data (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:bic:journl:v:16:y:2016:i:1:p:1-20

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