Template-Type: ReDIF-Paper 1.0
Author-Name: Konstantins Benkovskis
Author-X-Name-First: Konstantins
Author-X-Name-Last: Benkovskis
Author-Workplace-Name: Bank of Latvia
Author-Name: Santa Berzina
Author-X-Name-First: Santa
Author-X-Name-Last: Berzina
Author-Workplace-Name: Bank of Latvia
Author-Name: Liva Zorgenfreija
Author-X-Name-First: Liva
Author-X-Name-Last: Zorgenfreija
Author-Workplace-Name: Bank of Latvia
Title: Evaluation of Latvia's Re-Exports Using Firm-Level Data
Abstract: We use an anonymised firm-level trade database provided by the CSB to evaluate Latvia's re-exports. We obtain estimates of re-export flows and the corresponding re-export mark-ups by solving a linear maximisation problem for each firm-product pair. We find that the share of re-export flows in the total merchandise exports and imports is significant and follows an increasing trend. The share of re-exports is especially important in product groups, such as transport vehicles, plastics, mineral products, as well as machinery and electrical equipment. The majority of re-export flows is directed to Latvia's closest neighbours Lithuania and Estonia, suggesting that the country serves as a sort of a regional transport hub. We also find that the average re-export mark-ups were sizeable allowing us to conclude that re-export operations may also provide an important contribution to Latvia's GDP.
Creation-Date: 2015-11-09
File-URL: https://www.bank.lv/images/stories/pielikumi/publikacijas/petijumi/dp_3_2015_en.pdf
File-Format: Application/pdf
File-URL: https://www.macroeconomics.lv/sites/default/files/dp_3_2015_en_0.pdf
File-Format: Application/pdf
Number: 2015/03
Classification-JEL: D22, F14
Keywords: re-exports, firm-level data, Latvia, simplex
X-File-Ref: https://repec.bank.lv/refs/dpaper201503.txt
Handle: RePEc:ltv:dpaper:201503