09.11.2015.

Discussion Paper: Evaluation of Latvia's Re-Exports Using Firm-Level Data

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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.

Keywords: re-exports, firm-level data, Latvia, simplex

JEL codes: D22, F14

APA: Beņkovskis, K., Zorgenfreija, L., Bērziņa, S. (2020, 20. sep.). Discussion Paper: Evaluation of Latvia's Re-Exports Using Firm-Level Data. Taken from https://www.macroeconomics.lv/node/2563
MLA: Beņkovskis, Konstantīns. Zorgenfreija, Līva. Bērziņa, Santa. "Discussion Paper: Evaluation of Latvia's Re-Exports Using Firm-Level Data" www.macroeconomics.lv. Tīmeklis. 20.09.2020. <https://www.macroeconomics.lv/node/2563>.
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