Exporting Costs and Multi-Product Shipments
28 Pages Posted: 18 Nov 2020 Last revised: 3 May 2021
Date Written: 2020
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 tendtohaveahighernumberofshipmentsperperiodwithaloweraveragequantity and value. The mechanism considered in the paper is based on that multi-product 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: F10
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