Intermediaries in Entrepot Trade: Hong Kong Re-Exports of Chinese Goods

  title={Intermediaries in Entrepot Trade: Hong Kong Re-Exports of Chinese Goods},
  author={Gordon H. Hanson and Robert Feenstra},
  journal={Wiley-Blackwell: Journal of Economics \& Management Strategy},
In this paper, we examine Hong Kong's role in intermediating trade between China and the rest of the world. Hong Kong distributes a large fraction of China's exports. Net of customs, insurance, and freight charges, re-exports of Chinese goods are much more expensive when they leave Hong Kong than when they enter. Hong Kong markups on re-exports of Chinese goods are higher for differentiated products, products with higher variance in export prices, products sent to China for further processing… 

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