Reassessing the role of intermediaries in exports

2026-06-17

AI Summary

This study addresses a critical bias in the existing literature, which overestimates the role of intermediaries in exports by failing to distinguish pure intermediaries from manufacturers’ own export departments or vertically integrated entities. Leveraging firm-level microdata from Spain, the authors refine the definition of intermediaries by explicitly excluding these latter two categories, thereby enabling precise identification of pure intermediaries. Through reclassification and comparative statistical analysis, the paper reveals that the actual export share attributable to pure intermediaries is approximately 70% lower than previously estimated. Moreover, pure intermediaries exhibit significant differences from other exporters along key dimensions such as firm size and export intensity. These findings correct prevailing misconceptions about intermediary-driven trade and provide a more accurate empirical foundation for understanding the organizational structures of global trade.

Abstract

Previous studies conclude that intermediaries account for a large share of exports. Using Spanish firm-level data, we show that many firms classified as intermediaries are either manufacturer-owned export arms that ship their parent firms' products or vertically integrated firms that control design, production, and distribution and predominantly export goods sold under their own brands. Once we exclude these export arms and vertically integrated firms, the share of intermediaries in exports in our sample falls by about 70%. We also show that pure intermediaries differ markedly from export arms and vertically integrated firms along key firm and export dimensions.

Problem

• intermediaries
• exports
• firm-level data
• vertical integration
• export arms

Innovation

• intermediaries
• export arms
• vertically integrated firms
• firm-level data
• export classification