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Clarifying Trade Costs: Maritime Transport and Its Effect on Agricultural Trade

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  • Jane Korinek
  • Patricia Sourdin

Abstract

Greater attention has been given to trade costs in both the empirical trade literature and in theoretical models of international trade in recent years, with interest increasingly being directed towards the role of nonpolicy barriers such as transport costs. However, if distance is a proxy for transport and other trade costs, then the true effect of transport costs is impossible to determine. We attempt to remedy this by utilizing the newly compiled Organisation for Economic Co-operation and Development Maritime Transport Cost database to investigate the role that maritime freight costs play in determining ocean-shipped agricultural imports. We find that transport costs robustly and significantly negatively impact agricultural imports, even after controlling for shipping distance. Copyright 2010, Oxford University Press.

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Bibliographic Info

Article provided by Agricultural and Applied Economics Association in its journal Applied Economic Perspectives and Policy.

Volume (Year): 32 (2010)
Issue (Month): 3 ()
Pages: 417-435

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Handle: RePEc:oup:apecpp:v:32:y:2010:i:3:p:417-435

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Cited by:
  1. Richard Pomfret & Patricia Sourdin, 2010. "Why do trade costs vary?," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 146(4), pages 709-730, December.
  2. Inmaculada Martínez-Zarzoso & Sami Bensassi, 2011. "The price of modern maritime piracy," Ibero America Institute for Econ. Research (IAI) Discussion Papers 213, Ibero-America Institute for Economic Research.
  3. Gouel, Christophe & Jean, Sebastien, 2012. "Optimal food price stabilization in a small open developing country," Policy Research Working Paper Series 5943, The World Bank.
  4. Zhigang Li & Xiaohua Yu & Yinchu Zeng & Rainer Holst, 2012. "Estimating transport costs and trade barriers in China: Direct evidence from Chinese agricultural traders," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 112, Courant Research Centre PEG.
  5. Marcias, Manuel & Chevassus-Lozza, Emmanuelle & Latouche, Karine, 2011. "Trade and Transport Modes, A Differentiated Impact of Distance," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114370, European Association of Agricultural Economists.
  6. Murat Genç & David Law, 2014. "A Gravity Model of Barriers to Trade in New Zealand," Treasury Working Paper Series 14/05, New Zealand Treasury.
  7. Biewald, Anne & Rolinski, Susanne & Lotze-Campen, Hermann & Schmitz, Christoph, 2011. "Implementing Bilateral Trade in a Global Landuse Model," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114251, European Association of Agricultural Economists.

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