Re-Export: Assessing the Impact of Re-Export Companies on Sectors and the Economy

Abstract

Re-exports are an important part of international trade, as they account for about a quarter of total exports, and the growth rate of re-exports exceeds the growth rate of exports. Researchers find that re-exports have a positive impact on economic growth. Despite this, in existing studies, little attention has been paid to the impact of re-exports on sectors of the economy and the direct and indirect effects of re-exports on the national economy. Based on this, the purpose of the article is to consider the impact of re-export activities on sectors of the economy and on the economy as a whole using the example of one company. The study examines the distribution of the effects of re-export companies’ activities between the national economy and foreign economies and among sectors of the economy. In addition, the value of the primary and secondary effects of the influence of the re-export company on the national economy was determined and the local multiplier value was calculated. This study identifies the main factors that influence the distribution of re-export effects between the national economy and foreign economies and among sectors and industries, as well as factors that affect the magnitude of direct and indirect re-export effects on the national economy. The local multiplier value of re-exports was also determined at 1.73.