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Impact of Transport Costs on International Trade: The Case of Spanish Ceramic Exports

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Author Info
I Martínez-Zarzoso (Institute of International Economics and Department of Economics, University Jaume I, Spain)
L García-Menéndez () (Institute of International Economics and Department of Economics, University of Valencia, Spain.)
C Suárez-Burguet (Institute of International Economics and Department of Economics, University Jaume I, Spain)

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Abstract

This paper aims to investigate the determinants of maritime and overland transport costs and the role they play in deterring trade across countries. We estimate a transport cost function using data on maritime and overland transport of the ceramic sector (tiles) obtained from interviews held with Spanish logistics operators. We also study the relationship between transport costs and trade and estimate an import demand model for ceramic products. Additionally, we present a discussion on the sensitivity of trade flows and transportation costs to the existence of back-hauling, special conditions for transport and number of reloads.1 The study of modal transport (overland versus maritime) and its differential characteristics are of relevant interest for maritime economists and should be taken into account in economic policy-making. Furthermore, the proven impact of infrastructure on transport costs and trade points towards the importance of investing in new port infrastructures as a way of fostering trade and income. Our results from the transport cost estimation show that higher distance and poor partner infrastructure lead to a notable increase in transport costs. Inclusion of infrastructure measures improves the fit of the regression, thus corroborating the importance of infrastructure in determining transport costs. The distance coefficient remains significant and with similar magnitude when we add infrastructure variables. Our results from the trade equation estimation show that importer income, as expected, has a positive influence in bilateral trade flows. Higher transport costs significantly deter trade, and distance does not appear to be a good proxy for transport costs in the ceramics sector. Maritime Economics & Logistics (2003) 5, 179–198. doi:10.1057/palgrave.mel.9100069

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Publisher Info
Article provided by Palgrave Macmillan Journals in its journal Maritime Economics & Logistics.

Volume (Year): 5 (2003)
Issue (Month): 2 (June)
Pages: 179-198
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Handle: RePEc:pal:marecl:v:5:y:2003:i:2:p:179-198

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  1. Inmaculada Martínez-Zarzoso & Gordon Wilmsmeier, 2008. "Determinants of Maritime Transport Costs. A Panel Data Analysis for Latin American Trade," Ibero America Institute for Econ. Research (IAI) Discussion Papers 172, Ibero-America Institute for Economic Research. [Downloadable!]
  2. Pedro Coca Castaño & Laura Márquez Ramos & Inmaculada Martínez Zarzoso, 2005. "Infraestructuras, costos de transporte y flujos de comercio," Revista de Analisis Economico – Economic Analysis Review, Ilades-Georgetown University, Economics Department, vol. 20(1), pages 3-22, June. [Downloadable!]
  3. Inmaculada Martínez-Zarzoso & Felicitas Nowak-Lehmann D., 2006. "Is Distance a Good Proxy for Transport Costs?: The Case of Competing Transport Modes," cege – Center for European, Governance and Economic Development Research Discussion Papers 54, cege – Center for European, Governance and Economic Development Research, University of Goettingen (Germany).. [Downloadable!]
  4. Inmaculada Martínez-Zarzoso & Felicitas Nowak-Lehmann D., 2006. "Road and Maritime Transport Costs: A Comparative Analysis of Spanish Exports to Poland and Turkey," Ibero America Institute for Econ. Research (IAI) Discussion Papers 138, Ibero-America Institute for Economic Research. [Downloadable!]
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