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Bilateral Economies of Scope / Yao Amber Li, Sichuang Xu, Stephen Yeaple, Tengyu Zhao.
- Format:
- Book
- Author/Creator:
- Li, Yao Amber.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w32803.
- NBER working paper series no. w32803
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2024.
- Summary:
- International transactions are costly because they require investments in logistics, contracts, and the acquisition of local institutional knowledge. We posit that a portion of the fixed costs of entering a specific export market can be used toward costs of acquiring imports from that same market, and vice versa. Using dis-aggregated transactions data for Chinese firms from 2000 to 2015, we document firm-level trading patterns that suggest such market-specific bilateral economies of scope. Using a structural model, we estimate that the simultaneous export and import in a given country reduces export and import fixed costs by over 41 and 37 percent, respectively.
- Notes:
- August 2024.
- Print version record
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