A Theory on the Role of Wholesalers in International Trade based on Economies of Scope

Intermediaries and wholesalers play an important role in international trade. This paper develops a model of international trade with heterogeneous firms that offers an explanation of the existence of wholesalers. All exporting firms have to pay a fixed cost of establishing a distribution network in the foreign market. However, wholesalers possess a technology different to normal manufacturing firms: they can buy manufacturing goods domestically and sell in foreign markets and handle more than one good. A wholesaler therefore faces an additional fixed cost which is convex and monotonically increasing in the number of goods it ships. The entry of wholesale firms leads to productivity sorting. The most productive firms export on their own, as in the standard model, by paying a fixed cost to do so, while the least productive firms do not export. However, a range of firms with intermediate productivity levels export through international wholesalers. The existence of wholesale firms increases total exports and the number of firms that export. Moreover, a higher fixed cost of exporting leads to (i) a higher share of exported goods that is distributed by wholesalers, and (ii) a higher share of total exports that is distributed by wholesalers. The higher the fixed cost of exporting, the more important is the role of wholesalers since these can spread the fixed cost across more than one good. The wholesale technology therefore exhibits economies of scope. Finally, a larger fixed cost of exporting increases the scope of each wholesaler firm.heterogeneous firms; international trade; intermediation; wholesalers

Trade Liberalization, Input Intermediaries and Firm Productivity: Evidence from China

We investigate theoretically and empirically the role of wholesalers in mediating the productivity effects of trade liberalization. Intermediaries provide indirect access to foreign produced inputs. The productivity effects of input tariff cuts on firms that do not directly import therefore depends on the extent that wholesalers are a feature of input supply within an industry. Using firm level data from China, we document that wholesalers play no such role for direct importers. However, other firms experience productivity gains from reducing input tariffs if trade intermediation of foreign inputs within their sector is high. They suffer efficiency losses otherwise

Grain price adjustment asymmetry: the case of cowpea in Ghana

Patterns in price adjustment in response to information are important to market practitioners. This study looks at cowpea real wholesale price adjustment patterns in Bolgatanga, Wa, Makola and Techiman markets in Ghana. Using Techiman as the central market, a threshold autoregressive test for asymmetric price adjustment rejected the null hypothesis of symmetric adjustment for only the Bolgatanga-Techiman price series. An autoregressive conditional heteroskedastic regression indicates that wholesalers in Bolgatanga market respond differentially to price signals from Techiman than those in the other two markets. This suggests that policies targeting cowpea traders must recognize the differential responses by wholesalers to information.Africa, Ghana, wholesalers, market information, autoregressive conditional heteroskedasticity, threshold autoregressive, Crop Production/Industries, D82, D43,

1999 US tropical fish wholesaler survey: results and implications

A survey of marine life wholesalers was initiated in 1999 as a first step towards understanding the nature of Florida’s marine life industry, the demand for Florida products, and the need for changes in the way the industry is regulated. Florida firms deal primarily in marine species and collect much of their own product. Wholesalers outside of Florida handle more freshwater species and purchase most of their inventory, the majority from overseas suppliers. Dealers predict that the average firm size will continue to grow as the industry consolidates. Niche markets for eco-friendly product will gain momentum. In Florida, marketing strategies should point to the high quality of Florida species with emphasis on the growing popularity of invertebrates. Wholesalers should look to provide buyers of Florida product with more consistent quantities throughout the year. Resource managers will be challenged to find ways to protect over-harvested species without interfering with the collection of abundant species while considering the effect of new regulations. (42pp.

Analisis Hubungan Patron-klien (Studi Kasus Hubungan Toke dan Petani Sawit Pola Swadaya di Kecamatan Tambusai Utara Kabupaten Rokan Hulu)

Smallholder farmers in swadaya scheme continuously depend on wholesalers as thefarmers need the wholesalers to market their oil palm Fresh Fruit Bunches (FFB) to theoil palm factory. Relationship among wholesalers (toke) and smallholder farmers isreferred to as the patron-client relationship. In such a relationship, the wholesalers arecalled patron, while smallholders are called clients. The research objective was todetermine the marketing channels of oil palm fresh fruit bunches (FFB) of swadaya-scheme farmers and to analyze the factors which lead to patron-client relationship. Theresearch was conducted in Mahato and North Tambusai Village, North Tambusai Sub-District, Rokan Hulu District. This research used survey method. Sampling for oil palmfarmers was conducted by multistage random sampling. There are three marketingchannels of FFB identified. Marketing Channel 1 starts from farmers to wholesalers(non SPB) to wholesalers (SPB), where the non-SPB wholesalers only use the SPB ofthe SPB wholesalers to sell to oil palm factory. Marketing channel 2 starts from farmersto wholesalers (non SPB), to wholesalers (SPB) and then to the factory. MarketingChannel 3 starts from farmers to wholesalers (SPB) and to the factory. Factorsinfluencing the formation of patron-client relationship among wholesalers (toke) andsmallholders are: (1) FFB marketing of farmers highly depends on the wholesalers, (2)high farming costs, and (3) farmers are tied with a lot of debt to wholesalers foreveryday needs, children´s education and health cost.Keywords: patron-client, toke (wholesalers), marketing channels, oil pal

Beer Wholesalers

Beer Wholesaler

WHAT SHOULD WHOLESALERS AND RETAILERS DO?

Agribusiness,

Determinants of Food Safety Level in Fruit and Vegetable Wholesalers’ Supply Chain: Evidence from Spain and France

Food safety management in short supply chains of fruit and vegetables, controlled by large retailers, has been widely studied in the literature. However, when it comes to traditional long supply chains, which include a greater number of intermediaries and wholesalers who, in some cases, play a dual role as resellers and producers, the mechanisms which promote the use of safety certifications have yet to be clearly defined. The present study intended to fill this gap in the literature and shed light on the food safety level that exists in this channel. In addition, this work attempted to identify the existence of differences between both sales systems. For this purpose, the empirical research studied the most important variables that influence the food safety level of some of the main European fruit and vegetable wholesalers. A survey was thus designed and later applied to Spanish and French intermediaries working in key wholesale markets and in the southeast of Spain, which is the leading commercialization area of these products in Europe. The results revealed the positive influence of specific customers (big retailers) on establishing stricter safety controls within wholesale companies. It was also observed that specific wholesalers also play an important role in the system, namely those dedicated to importing, but which are also responsible for quality and safety inspection of agri-food products exported from third countries into the European Union

Wholesalers and Retailers in US Trade

International trade models typically assume that producers in one country trade directly with final consumers in another. In reality, of course, trade can involve long chains of potentially independent actors who move goods through wholesale and retail distribution networks. These networks likely affect the magnitude and nature of trade frictions and hence both the pattern of trade and its welfare gains. To promote further understanding of the means by which goods move across borders, this paper examines the extent to which US exports and imports flow through wholesalers and retailers versus producing and consuming firms.Wholesaler, Retailer, Intermediary, International Trade