Nothing Special   »   [go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/eee/japwor/v44y2017icp35-47.html
   My bibliography  Save this article

Indirect exports and wholesalers: Evidence from interfirm transaction network data

Author

Listed:
  • Fujii, Daisuke
  • Ono, Yukako
  • Saito, Yukiko Umeno
Abstract
A substantial fraction of international trade is facilitated by wholesalers, who enable manufacturers to indirectly export their products to foreign markets. Using large-scale Japanese interfirm transaction network data, this paper investigates the features of both direct and indirect exporters as well as international wholesalers. As predicted by a simple Melitz-type trade model with indirect export alternative, the sorting pattern is confirmed in our data, and the distributions of sales and labor productivity are ordered for direct, indirect, and non-exporters in terms of first order stochastic dominance. Multinomial logit analysis is also consistent with the model, which assumes lower fixed cost and higher marginal cost for indirect exporters compared to direct exporters. We also find that the number of suppliers raises the probability of direct exporting implying a cost sharing mechanism of firms with more suppliers. On the other hand, the number of customers raises the probability of exporting in general (both indirect and direct) implying a higher product appeal and broader demand base for firms who have more customers.

Suggested Citation

  • Fujii, Daisuke & Ono, Yukako & Saito, Yukiko Umeno, 2017. "Indirect exports and wholesalers: Evidence from interfirm transaction network data," Japan and the World Economy, Elsevier, vol. 44(C), pages 35-47.
    • Handle: RePEc:eee:japwor:v:44:y:2017:i:c:p:35-47
    DOI: 10.1016/j.japwor.2017.11.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0922142517300592
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.japwor.2017.11.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Pol Antras & Davin Chor & Thibault Fally & Russell Hillberry, 2012. "Measuring the Upstreamness of Production and Trade Flows," American Economic Review, American Economic Association, vol. 102(3), pages 412-416, May.
    2. Enghin Atalay & Ali Horta?su & Chad Syverson, 2014. "Vertical Integration and Input Flows," American Economic Review, American Economic Association, vol. 104(4), pages 1120-1148, April.
    3. repec:hal:pseose:halshs-01510997 is not listed on IDEAS
    4. Crozet, Matthieu & Lalanne, Guy & Poncet, Sandra, 2013. "Wholesalers in international trade," European Economic Review, Elsevier, vol. 58(C), pages 1-17.
    5. Andrew B. Bernard & Marco Grazzi & Chiara Tomasi, 2010. "Intermediaries in International Trade: direct versus indirect modes of export," LEM Papers Series 2010/19, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    6. Ahn, JaeBin & Khandelwal, Amit K. & Wei, Shang-Jin, 2011. "The role of intermediaries in facilitating trade," Journal of International Economics, Elsevier, vol. 84(1), pages 73-85, May.
    7. Andrew B. Bernard & Andreas Moxnes & Yukiko U. Saito, 2019. "Production Networks, Geography, and Firm Performance," Journal of Political Economy, University of Chicago Press, vol. 127(2), pages 639-688.
    8. Rauch, James E., 1999. "Networks versus markets in international trade," Journal of International Economics, Elsevier, vol. 48(1), pages 7-35, June.
    9. Andrew B. Bernard & J. Bradford Jensen & Stephen J. Redding & Peter K. Schott, 2010. "Wholesalers and Retailers in US Trade," American Economic Review, American Economic Association, vol. 100(2), pages 408-413, May.
    10. Andrew B. BERNARD & Andreas MOXNES & SAITO Yukiko, 2014. "Geography and Firm Performance in the Japanese Production Network," Discussion papers 14034, Research Institute of Economy, Trade and Industry (RIETI).
    11. Bernard, Andrew & Redding, Stephen & Schott, Peter & Jensen, J Bradford, 2010. "Wholesalers and Retailers in US Trade (Long Version)," CEPR Discussion Papers 7642, C.E.P.R. Discussion Papers.
    12. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Emmanuel Dhyne & Ayumu Ken Kikkawa & Magne Mogstad & Felix Tintelnot, 2021. "Trade and Domestic Production Networks," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 88(2), pages 643-668.
    2. Endoh, Masahiro, 2022. "The impact of firms’ international trade on domestic suppliers: The case of Japan," Journal of the Japanese and International Economies, Elsevier, vol. 63(C).
    3. Jonathan EATON & Samuel KORTUM & Francis KRAMARZ, 2016. "Firm-to-Firm Trade: Imports, exports, and the labor market," Discussion papers 16048, Research Institute of Economy, Trade and Industry (RIETI).
    4. ITO Tadashi & OKAMOTO Chigusa & SAITO Yukiko, 2020. "Intermediaries in Transaction Networks: Location of Wholesalers' Headquarters and Other Establishments," Discussion papers 20056, Research Institute of Economy, Trade and Industry (RIETI).
    5. Nucci, Francesco & Pietrovito, Filomena & Pozzolo, Alberto Franco, 2023. "Intermediated trade and credit constraints: The case of firm’s imports," International Economics, Elsevier, vol. 175(C), pages 201-220.
    6. FUJII Daisuke, 2017. "International Trade and Domestic Production Networks," Discussion papers 17116, Research Institute of Economy, Trade and Industry (RIETI).
    7. Masahiro Endoh, 2020. "The Impact of Firms' International Trade on Domestic Suppliers," Keio-IES Discussion Paper Series 2020-016, Institute for Economics Studies, Keio University.
    8. ITO Tadashi & NAKAMURA Ryohei & MORITA Manabu, 2017. "Wholesalers, Indirect Exports, Geography, and Economies of Scope: Evidence from firm transaction data in Japan," Discussion papers 17114, Research Institute of Economy, Trade and Industry (RIETI).
    9. Ito, Tadashi & Nakamura, Ryohei & Morita, Manabu, 2021. "Wholesalers, indirect exports, geography, and economies of scope: Evidence from firm transaction data in Japan," Japan and the World Economy, Elsevier, vol. 58(C).
    10. Tadashi Ito & Yukiko Umeno Saito, 2021. "Indirect trade and direct trade: Evidence from Japanese firm transaction data," The World Economy, Wiley Blackwell, vol. 44(2), pages 444-461, February.
    11. LI Zhigang & WEI Shang-Jin & ZHANG Hongyong, 2018. "Production Chains, Exchange Rate Shocks, and Firm Performance," Discussion papers 18058, Research Institute of Economy, Trade and Industry (RIETI).
    12. Daunfeldt, Sven-Olov & Engberg, Erik & Halvarsson, Daniel & Kokko, Ari & Tingvall, Patrik, 2019. "Wholesale firms: A catalyst for Swedish exports?," Ratio Working Papers 328, The Ratio Institute.
    13. Sun, Meng, 2021. "The Internet and SME Participation in Exports," Information Economics and Policy, Elsevier, vol. 57(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Emmanuel Dhyne & Stela Rubínová, 2016. "The supplier network of exporters : Connecting the dots," Working Paper Research 296, National Bank of Belgium.
    2. Defever, Fabrice & Imbruno, Michele & Kneller, Richard, 2020. "Trade liberalization, input intermediaries and firm productivity: Evidence from China," Journal of International Economics, Elsevier, vol. 126(C).
    3. Araujo, Luis & Mion, Giordano & Ornelas, Emanuel, 2016. "Institutions and export dynamics," Journal of International Economics, Elsevier, vol. 98(C), pages 2-20.
    4. Daunfeldt, Sven-Olov & Engberg, Erik & Halvarsson, Daniel & Kokko, Ari & Tingvall, Patrik, 2019. "Wholesale firms: A catalyst for Swedish exports?," Ratio Working Papers 328, The Ratio Institute.
    5. Hege Medin, 2022. "Why do firms import via merchants in entrepôt countries rather than directly from the source?," Review of International Economics, Wiley Blackwell, vol. 30(3), pages 854-884, August.
    6. Crozet, Matthieu & Lalanne, Guy & Poncet, Sandra, 2013. "Wholesalers in international trade," European Economic Review, Elsevier, vol. 58(C), pages 1-17.
    7. Dasgupta, Kunal & Mondria, Jordi, 2018. "Quality uncertainty and intermediation in international trade," European Economic Review, Elsevier, vol. 104(C), pages 68-91.
    8. Nunn, Nathan & Trefler, Daniel, 2014. "Domestic Institutions as a Source of Comparative Advantage," Handbook of International Economics, in: Gopinath, G. & Helpman, . & Rogoff, K. (ed.), Handbook of International Economics, edition 1, volume 4, chapter 0, pages 263-315, Elsevier.
    9. Mathias Juust, 2021. "Trade Effects Of A Negative Export Shock On Direct Exporters And Wholesalers," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 133, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    10. Hege Medin, 2021. "Customs brokers as intermediaries in international trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 157(2), pages 295-322, May.
    11. Ronald Davies & Tine Jeppesen, 2015. "Export mode, firm heterogeneity, and source country characteristics," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 151(2), pages 169-195, May.
    12. Tsuyoshi Toshimitsu, 2019. "Trade Intermediaries, the Choice of Export Mode, and the “Learning-By-Exporting” Hypothesis," Discussion Paper Series 190, School of Economics, Kwansei Gakuin University.
    13. Ito, Tadashi & Nakamura, Ryohei & Morita, Manabu, 2021. "Wholesalers, indirect exports, geography, and economies of scope: Evidence from firm transaction data in Japan," Japan and the World Economy, Elsevier, vol. 58(C).
    14. Christian Volpe Martincus, 2016. "Out of the Border Labyrinth: An Assessment of Trade Facilitation Initiatives in Latin America and the Caribbean," IDB Publications (Books), Inter-American Development Bank, number 96856, February.
    15. Erbahar, Aksel & Rebeyrol, Vincent, 2023. "Trade intermediation by producers," Journal of International Economics, Elsevier, vol. 140(C).
    16. Krolikowski, Pawel M. & McCallum, Andrew H., 2021. "Goods-market frictions and international trade," Journal of International Economics, Elsevier, vol. 129(C).
    17. Fergal McCann, 2013. "Indirect Exporters," Journal of Industry, Competition and Trade, Springer, vol. 13(4), pages 519-535, December.
    18. Volpe Martincus, Christian & Carballo, Jerónimo & Graziano, Alejandro, 2015. "Customs," Journal of International Economics, Elsevier, vol. 96(1), pages 119-137.
    19. Nucci, Francesco & Pietrovito, Filomena & Pozzolo, Alberto Franco, 2023. "Intermediated trade and credit constraints: The case of firm’s imports," International Economics, Elsevier, vol. 175(C), pages 201-220.
    20. Gaigné, Carl & Latouche, Karine & Turolla, Stéphane, 2015. "Vertical ownership and export performance: firm-level evidence from France," Working Papers 208913, Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2).

    More about this item

    Keywords

    Indirect export; Wholesale; Network; Mode of export; Firm heterogeneity;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:japwor:v:44:y:2017:i:c:p:35-47. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/505557 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.