Intermediaries in Entrepôt Trade: Hong Kong Re‐Exports of Chinese Goods

Robert Feenstra and Gordon Hanson

Journal of Economics & Management Strategy, 2004, vol. 13, issue 1, 3-35

Abstract: In this paper, we examine Hong Kong's role in intermediating trade between China and the rest of the world. Hong Kong traders distribute a large fraction of China's exports. Net of customs, insurance, and freight charges, re‐exports of Chinese goods are much more expensive when they leave Hong Kong than when they enter. Hong Kong markups on re‐exports of Chinese goods are higher for differentiated products, products with higher variance in export prices, and products sent to China for further processing. These results are consistent with the view that traders resolve informational problems in exchange. Additional results suggest that traders price discriminate across destination markets and use transfer pricing to shift income from high‐tax countries to Hong Kong.

Date: 2004
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (161)

Downloads: (external link)
https://doi.org/10.1111/j.1430-9134.2004.00002.x

Related works:
Working Paper: Intermediaries in Entrepot Trade: Hong Kong Re-Exports of Chinese Goods (2001)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:jemstr:v:13:y:2004:i:1:p:3-35

Ordering information: This journal article can be ordered from
http://www.blackwell ... ref=1058-6407&site=1

Access Statistics for this article

More articles in Journal of Economics & Management Strategy from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().