Abstract
The effects of trade intermediaries on firms’ export market diversification have not been explored sufficiently. Inspired by some evidence of trade intermediaries, we argue that they can positively and negatively affect firms’ export market diversification. They can facilitate market entry by transferring knowledge. However, they also deter firms’ market entry by setting up discriminatory market barriers. Using a merged dataset from Chinese Customs Trade Statistics (CCTS) and China’s Annual Surveys of Industrial Firms (ASIF), we identify the mixed effects of trade intermediaries.
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