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Factors determining the trade costs of major European exporters

Author

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  • Luisa Marti

    (Technical University of Valencia)

  • Rosa Puertas

    (Technical University of Valencia)

Abstract

The aim of this paper is to analyse the determining factors of trade costs in the top European exporting nations (Germany, United Kingdom, Italy, France, Netherlands, Belgium, Spain and Sweden). For this purpose, we have estimated a trade costs equation to evaluate the importance of logistical performance and other variables that may be key in determining trade costs. Our results reveal the great importance of logistics, even greater than the effect of distance on trade costs, and they also show that in those countries where trade costs are lower, logistics becomes more decisive in international trade. This analysis allows one to draw conclusions on the type of improvements necessary for cost reductions and, therefore, for greater international competitiveness. The research has been conducted for 2 years, thus facilitating the detection of possible changes that can in turn reveal the existence of a trade pattern in these countries.

Suggested Citation

  • Luisa Marti & Rosa Puertas, 2019. "Factors determining the trade costs of major European exporters," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 21(3), pages 324-333, September.
    • Handle: RePEc:pal:marecl:v:21:y:2019:i:3:d:10.1057_s41278-017-0093-5
    DOI: 10.1057/s41278-017-0093-5
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    References listed on IDEAS

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    Cited by:

    1. Aggarwal, Sakshi, 2023. "The empirical measurement and determinants of intra-industry trade for a developing country," MPRA Paper 117112, University Library of Munich, Germany.
    2. Kemal Türkcan & Socrates Kraido Majune, 2022. "Logistics infrastructure and export survival in European Union countries," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 49(2), pages 509-535, May.

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