Facilitating Inclusive Global Trade: Evidence from a Field Experiment
37 Pages Posted: 27 Sep 2015 Last revised: 4 Mar 2019
Date Written: March 2, 2019
How can we make global trade inclusive for smaller sellers and firms? I show that an e-commerce platform could increase on-site exports from small sellers through integrating existing logistics services. Export increase comes exclusively along the extensive margin, i.e., from new sellers or new destinations, and is larger for more distant countries and differentiated products. I provide strong evidence that the export increase is driven by a reduction in export entry costs. I discuss the role of resource integration and the importance of reducing export entry costs for facilitating inclusive global trade.
Keywords: Distributional gains from trade, e-commerce platform, international trade, randomized field experiment
Suggested Citation: Suggested Citation