Intermediaries in international trade

Kunal Dasgupta

Chapter 22 in Elgar Encyclopedia of International Trade, 2026, pp 107-110 from Edward Elgar Publishing

Abstract: This entry examines the critical role of intermediaries in international trade. New datasets from multiple geographies that link producers with intermediaries have shed light on various aspects of intermediaries’ operations: whether intermediaries are similar to manufacturers that engage in international trade, how intermediaries in exporting countries differ from their counterparts in importing countries, and what type of firms benefit from the presence of intermediaries. The entry presents a series of stylized facts, followed by a discussion of theories that rationalize each fact. The key insight emerging from the discussion is that intermediaries help firms, both large and small, to lower the fixed costs of engaging in international trade. It concludes by outlining open questions about the matching between local firms and local intermediaries, the evolution of firms’ export modes, and the impact of imperfect competition in the intermediation sector on welfare.

Keywords: Intermediaries; Fixed cost; Search; Relationship; Welfare (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035327492
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