Speaker: Sebastian Claro Edwards
Affiliation: Universidad de los Andes
Date and time:Wednesday, May 07, 2025 14:30 (Santiago, GMT-04:00)
Location:

• Auditorio at the Central Bank of Chile, Morandé 115, second floor.
• Online meeting

Registration: seminarios@bcentral.cl

Abstract: This paper documents that indirect trade via middlemen is prominent in international production networks. The presence of middlemen importers raises welfare and reduces market concentration and markups. It also alters the architecture of the network, magnifying the effects of a trade shock on welfare. Efficiency gains in the indirect-trade technology result in larger increases in welfare than similar reductions in trade costs. Finally, our findings indicate that an efficient trade intermediation sector complements trade promotion policies.