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A rather empty world: the many faces of distance and the persistent resistance to international trade

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  • Gert-Jan M. Linders
  • Martijn J. Burger
  • Frank G. van Oort

Abstract

Despite the rapid growth of world trade over the past several decades, international trade patterns remain very much affected by high trade costs. In this paper, we emphasize the importance of distance between countries in a proper explanation of the persistent resistance to trade. We find that both formal trade barriers (tariffs, transport costs, etc.) and informal trade barriers (related to cultural and institutional distances) between countries have retained their importance to trade. Not only are these tangible and intangible barriers critical in explaining the volume of trade between countries but they also help to explain the absence of trade between many countries. Copyright 2008, Oxford University Press.

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Bibliographic Info

Article provided by Cambridge Political Economy Society in its journal Cambridge Journal of Regions, Economy and Society.

Volume (Year): 1 (2008)
Issue (Month): 3 ()
Pages: 439-458

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Handle: RePEc:oup:cjrecs:v:1:y:2008:i:3:p:439-458

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Cited by:
  1. Fleming, Euan M. & Thiemann, Franziska & Mueller, Rolf A.E., 2011. "Information and Communication Technology and the Global Flow of Wine: A Gravity Model of ICT in Wine Trade," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114353, European Association of Agricultural Economists.
  2. Charles Plaigin, 2009. "Exploratory study on the presence of cultural and institutional growth spillovers," DULBEA Working Papers 09-03.RS, ULB -- Universite Libre de Bruxelles.
  3. Martijn Burger & Frank van Oort & Gert-Jan Linders, 2009. "On the Specification of the Gravity Model of Trade: Zeros, Excess Zeros and Zero-inflated Estimation," Spatial Economic Analysis, Taylor & Francis Journals, vol. 4(2), pages 167-190.
  4. Maureen Lankhuizen & Henri L.F. de Groot & Gert-Jan M. Linders, 2009. "The Trade-Off between Foreign Direct Investments and Exports: The Role of Multiple Dimensions of Distance," Tinbergen Institute Discussion Papers 09-050/3, Tinbergen Institute.
  5. Murat Genç & David Law, 2014. "A Gravity Model of Barriers to Trade in New Zealand," Treasury Working Paper Series 14/05, New Zealand Treasury.
  6. Francesco Picciolo & Tiziano Squartini & Franco Ruzzenenti & Riccardo Basosi & Diego Garlaschelli, 2012. "The role of distances in the World Trade Web," Papers 1210.3269, arXiv.org, revised Oct 2012.
  7. Maureen Lankhuizen & Henri L.F. de Groot & Gert-Jan M. Linders, 2009. "The Trade-Off between Foreign Direct Investments and Exports: The Role of Multiple Dimensions of Distance," Tinbergen Institute Discussion Papers 09-050/3, Tinbergen Institute.
  8. Pahan Prasada, 2011. "National and supranational institutions and trade," STUDIES IN TRADE AND INVESTMENT, in: Trade-led growth: A sound strategy for Asia, chapter 10 United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
  9. Tobias Schlueter & Soenke Sievers, 2014. "Determinants of market beta: the impacts of firm-specific accounting figures and market conditions," Review of Quantitative Finance and Accounting, Springer, vol. 42(3), pages 535-570, April.
  10. Martijn J. Burger & Mark Thissen & Frank G. van Oort & Dario Diodato, 2014. "The Magnitude and Distance Decay of Trade in Goods and Services: New Evidence for European Countries," Tinbergen Institute Discussion Papers 14-031/VII, Tinbergen Institute.

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