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Learning about demand abroad from wholesalers: a B2B analysis. NBB Working Paper No 377, November 2019

Connell, William and Dhyne, Emmanuel and Vandenbussche, Hylke (2019) Learning about demand abroad from wholesalers: a B2B analysis. NBB Working Paper No 377, November 2019. [Working Paper]

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    This paper uses Business to Business (B2B) transaction level data. It shows that manufacturing firms that initially export via a wholesaler are much more likely to become direct exporters to the same destination in subsequent periods. Theoretically, we rationalise this finding by demonstrating how a connection to a wholesaler reduces uncertainty about the foreign demand. In the data we isolate the channel for demand learning from productivity spillovers. Non-exporting manufacturing firms, previously serving a foreign destination through an exporting wholesaler, have a much higher probability of becoming direct exporters to the same export market in subsequent periods. A connection to an exporting wholesaler results in a probability of exporting to the same destination that is six times higher than a comparable firm without any exposure to the foreign destination.

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    Item Type: Working Paper
    Uncontrolled Keywords: wholesalers, indirect exports, learning
    Subjects for non-EU documents: Countries > Belgium
    EU policies and themes > Policies & related activities > economic and financial affairs > business/private economic activity
    EU policies and themes > External relations > international trade
    Subjects for EU documents: UNSPECIFIED
    EU Series and Periodicals: UNSPECIFIED
    EU Annual Reports: UNSPECIFIED
    Series: Series > National Bank of Belgium (Brussels) > Working Papers
    Depositing User: Phil Wilkin
    Official EU Document: No
    Language: English
    Date Deposited: 28 Jan 2020 19:18
    Number of Pages: 55
    Last Modified: 28 Jan 2020 19:18

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