Learning About Demand Abroad From Wholesalers: a B2B Analysis

Hylke Vandenbussche, William Connell Garcia and Emmanuel Dhyne

No 14123, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper uses Business to Business (B2B) transaction level data. It shows that manufacturing firms that initially export via a wholesaler are much more likely to become direct exporters to the same destination in subsequent periods. Theoretically, we rationalize this finding by demonstrating how a connection to a wholesaler reduces uncertainty about the foreign demand. In the data we isolate the channel for demand learning from productivity spillovers. Non-exporting manufacturing firms, previously serving a foreign destination through an exporting wholesaler, have a much higher probability of becoming direct exporters to the same export market in subsequent periods. A connection to an exporting wholesaler results in a probability of exporting to the same destination that is six times higher than a comparable firm without any exposure to the foreign destination.

Keywords: B2b data; Learning about demand; Direct and indirect exports (search for similar items in EconPapers)
JEL-codes: F14 (search for similar items in EconPapers)
Date: 2019-11
New Economics Papers: this item is included in nep-int
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Related works:
Working Paper: Learning about demand abroad from wholesalers: a B2B analysis (2019)
Working Paper: Learning about demand abroad from wholesalers: a B2B analysis (2019)
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