DP7642 Wholesalers and Retailers in US Trade (Long Version)

Author(s): Andrew B. Bernard, J Bradford Jensen, Stephen J. Redding, Peter K. Schott
Publication Date: January 2010
Keyword(s): Intermediary, International Trade, Retailer, Wholesaler
JEL(s): F10, F14
Programme Areas: International Trade and Regional Economics
Link to this Page: www.cepr.org/active/publications/discussion_papers/dp.php?dpno=7642

International trade models typically assume that producers in one country trade directly with final consumers in another. In the real world, of course, trade can involve long chains of potentially independent actors who move goods through wholesale and retail distribution networks. These networks likely affect the magnitude and nature of trade frictions and hence both the pattern of trade and its welfare gains. To promote further understanding of the means by which goods move across borders, this paper examines the extent to which U.S. exports and imports flow through wholesalers and retailers versus