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Customs Agents in International Trade

Authors: Wanyu Chung; Robert J. R. Elliott; Yangjun Han;

Customs Agents in International Trade

Abstract

More than 85% of UK non-EU export value is facilitated by customs agents, yet little is known about how firms organise and adjust these relationships. Using transaction-level UK customs data from 2009 to 2019, this paper provides novel evidence on trader-agent relationships. We document a highly concentrated and skewed network structure: most trader-agent links are short-lived and low value, while a small number of persistent relationships account for the majority of agent-mediated trade. We show that agent use reflects distinct strategic motives. Firms are more likely to rely on agents when entering new markets or introducing new products (exploration), but these exploratory relationships are shallow and short-lived. In contrast, when firms trade in markets aligned with agents’ established expertise (exploitation), relationships are deeper and more persistent. Finally, exploiting the 2016 Brexit referendum as a policy uncertainty shock, we show that EU-exposed firms reorganise and deepen their reliance on customs agents.

Keywords

intermediaries, export dynamics, ddc:330, F14, firm-to-firm networks, F13, Customs agents

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average
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