Exporting Costs and Multi-Product Shipments

28 Pages Posted: 18 Nov 2020 Last revised: 3 May 2021

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 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

Suggested Citation

Gomtsyan, David and Tarasov, Alexander, Exporting Costs and Multi-Product Shipments (2020). ZEW - Centre for European Economic Research Discussion Paper No. 20-061, Available at SSRN: https://ssrn.com/abstract=3732072 or http://dx.doi.org/10.2139/ssrn.3732072

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

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
18
Abstract Views
243
PlumX Metrics