Exporting Costs and Multi-Product Shipments

27 Pages Posted: 3 Nov 2020

See all articles by David Gomtsyan

David Gomtsyan

ZEW – Leibniz Centre for European Economic Research

Alexander Tarasov

National Research University Higher School of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: 2020

Abstract

In this paper, employing transaction level data for Russian imports, we explore the role of multi-product shipments in explaining shipping patterns across countries. First, we document that firms from more developed countries include on average more different products into a single shipment. We then show that such multi-product shipments can potentially explain why more developed countries tend to have a higher number of shipments per period with a lower average quantity and value. The mechanism considered in the paper is based on that multiproduct shipments allow splitting fixed costs per shipment across many products and, therefore, reducing total shipment costs. As a result, more developed countries tend to have lower fixed costs per shipment. Finally, we construct a simple partial equilibrium model that enables us to quantify the role of multi-product shipments in determining shipping costs.

Keywords: asymmetric trade costs, fixed costs per shipment, advanced countries

JEL Classification: F100

Suggested Citation

Gomtsyan, David and Tarasov, Alexander, Exporting Costs and Multi-Product Shipments (2020). CESifo Working Paper No. 8652, Available at SSRN: https://ssrn.com/abstract=3724067 or http://dx.doi.org/10.2139/ssrn.3724067

David Gomtsyan (Contact Author)

ZEW – Leibniz Centre for European Economic Research ( email )

L 7, 1
Mannheim, L 7, 1
Germany

Alexander Tarasov

National Research University Higher School of Economics ( email )

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

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