Brokers As a Governance Structure ? Evidence from the French Imports Industry of Fresh Produce

Karine Latouche (INRA-LERECO)

Abstract: There is little discussion in the literature about trade intermediaries because data is rare. However, in TCE brokers would help buyers and sellers to reduce transaction costs. Using very original data, our article sheds light on the recourse of brokers when importing fresh produce in France. To do so, we distinguish among direct and indirect imports. We then investigate the impact of country level data on the share of indirect/direct flows of imports by country of origin at the 8-digit level that enter the french market. We show that brokers are more likely to operate in context when fixed and variable costs to trade are high whereas retailers are sensitive to tariffs and product sensitivity.

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