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The Role of Intermediaries in Facilitating Trade

Shang-Jin Wei (), JaeBin Ahn and Amit Khandelwal

Working Papers from eSocialSciences

Abstract: They are providing systematic evidence that intermediaries play an important role in facilitating trade using a firm-level the census of China's exports. Intermediaries account for around 20% of China's exports in 2005. This implies that many firms engage in trade without directly exporting products. We modify a heterogeneous firm model so that firms endogenously select their mode of export--either directly or indirectly through an intermediary. The model predicts that intermediaries will be relatively more important in markets that are more difficult to penetrate. They also provide empirical confirmation for this prediction, and generate new facts regarding the activity of intermediaries.[Working Paper No. 255]

Keywords: China; Intermediaries; Heterogeneous Firms; Middlemen; Trade Costs (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-int and nep-tra
Date: 2010-06
Note: Institutional Papers
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Journal Article: The role of intermediaries in facilitating trade (2011) Downloads
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