Search results for "Trade cost"
showing 2 items of 12 documents
International trade and internal geography revisited
2003
Trade liberalization and trade policy obviously affect the internal distribution of economic activities within a liberalizing country. We show that the impact of decreasing international trade costs on the regional distributionof economic activities crucially depends on the value of transport costs internalto the country. Trade liberalization in developing countries with poor internal infrastructures and small volumes of interregional trade is likely to increase regional disparities, while developed countries with good internalinfrastructures and large volumes of interregional trade are likely to experienceredispersion. We argue that the way transport and trade costs are modeledmight have a…
IS THERE A CONTINENTAL BIAS IN TRADE?
2011
The relationship between geography and trade is a central topic in international economics. This paper investigates the potential existence of a continental bias in world trade flows on a sample of 182 countries over the period 1990-2006. Using traditional estimation techniques and recent developments in the econometric analysis of the gravity equation, we find robust evidence of an economically significant continental bias in trade. It implies that, other things equal, countries located on the same continent trade more with each other than countries located on different continents. A continent-by-continent analysis reveals that Oceania, America, Europe and Asia are behind this result. Afri…