Skip Nav Destination
Close Modal
Update search
NARROW
Format
Journal
Date
Availability
1-1 of 1
Sichuang Xu
Close
Follow your search
Access your saved searches in your account
Would you like to receive an alert when new items match your search?
Sort by
Journal Articles
Publisher: Journals Gateway
The Review of Economics and Statistics 1–45.
Published: 25 November 2024
Abstract
View article
PDF
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 cost of entering a specific export market can be used toward covering the cost of acquiring imported inputs 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 suggesting such bilateral economies of scope. Through a structural model, we estimate that the simultaneous export and import in a given country reduce export and import fixed costs by around 42 and 35 percent, respectively.
Includes: Supplementary data