Title

Wholesalers in international trade

Document Type

Journal article

Source Publication

European Economic Review

Publication Date

2-2013

Volume

58

First Page

1

Last Page

17

Publisher

Elsevier BV

Keywords

Wholesalers, International trade, Intermediated exports, Heterogeneous firms, Quality

Abstract

Recent empirical research in international trade has revealed overwhelming evidence that, in all countries, a remarkably small proportion of firms report exports in Customs statistics. However, a large share of these are wholesalers. This suggests that the number of producers selling their products abroad might be much greater than that suggested by a simple count of the firms directly reporting their exports. This paper sheds light on the role of wholesalers in international trade. Our model uses very general assumptions to show that intermediated exporters may contribute significantly to the extension of countries' export opportunities. The model predicts a twofold role in international trade. First, wholesalers alleviate the difficulty of reaching less-accessible markets. Second, they help less-efficient firms to supply foreign markets, thus increasing the number of exported varieties at the aggregate level. We use French firm-level export data to provide empirical support for these two predictions.

DOI

10.1016/j.euroecorev.2012.10.005

Print ISSN

00142921

E-ISSN

1873572X

Publisher Statement

Copyright © 2012 Elsevier B.V. All rights reserved.

Access to external full text or publisher's version may require subscription.

Additional Information

This article also published as Crozet, M., Lalanne, G., & Poncet, S. (2010). Wholesalers in international trade. CEPII Working Paper, (2010-31). France: CEPII. Retrieved from http://www.cepii.fr/PDF_PUB/wp/2010/wp2010-31.pdf

Full-text Version

Publisher’s Version

Recommended Citation

Crozet, M., Lalanne, G., & Poncet, S. (2013). Wholesalers in international trade. European Economic Review, 58, 1-17. doi: 10.1016/j.euroecorev.2012.10.005