Exporting costs and multi-product shipments

Gomtsyan, David ; Tarasov, Alexander

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URL: https://madoc.bib.uni-mannheim.de/58220
URN: urn:nbn:de:bsz:180-madoc-582209
Document Type: Working paper
Year of publication: 2020
The title of a journal, publication series: ZEW Discussion Papers
Volume: 20-061
Place of publication: Mannheim
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: F10,
Keywords (English): Asymmetric trade costs , fixed costs per shipment , advanced countries
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.

Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.

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