The paper provides novel evidence on the heterogeneous response of exporting firms to exchange rate movements. Italian firm-level trade data by product-destination reveal that export price elasticity to exchange rate variation is larger for export intermediaries than for direct manufacturing exporters. To rationalize such evidence, the paper proposes a model of heterogeneous pricing-to-market where intermediated trade features double marginalization. Further validation is provided testing predictions on the adjustment in the relative number of products traded over the two channels. Results suggest that, in addition to facilitating trade, export intermediation contribute to stabilize trade patterns across countries.

Keywords: Export intermediation, Heterogeneous markups, Pricing-to-market, Double marginalization, Exchange rate pass-through, Export mode selection, Productivity sorting.

JEL codes: F12, F14, D22, L22