02141cas a2200241 a 4500 AALejournalIMF016034 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513519876 1018-5941 BD-DhAAL BD-DhAAL Kamali, Parisa. Exporting Through Intermediaries : Impact on Export Dynamics and Welfare / Parisa Kamali. Washington, D.C. : International Monetary Fund, 2019. 1 online resource (58 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students In many countries, a sizable share of international trade is carried out by intermediaries. While large firms tend to export to foreign markets directly, smaller firms typically export via intermediaries (indirect exporting). I document a set of facts that characterize the dynamic nature of indirect exporting using firm-level data from Vietnam and develop a dynamic trade model with both direct and indirect exporting modes and customer accumulation. The model is calibrated to match the dynamic moments of the data. The calibration yields fixed costs of indirect exporting that are less than a third of those of direct exporting, the variable costs of indirect exporting are twice higher, and demand for the indirectly exported products grows more slowly. Decomposing the gains from indirect and direct exporting, I find that 18 percent of the gains from trade in Vietnam are generated by indirect exporters. Finally, I demonstrate that a dynamic model that excludes the indirect exporting channel will overstate the welfare gains associated with trade liberalization by a factor of two. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2019/302 Full text available on IMF http://elibrary.imf.org/view/journals/001/2019/302/001.2019.issue-302-en.xml IMF e-Library