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Do transport costs have a differential effect on trade at the sectoral level?

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Author Info

  • Inmaculada Martinez-Zarzoso
  • Eva Maria Perez-Garcia
  • Celestino Suarez-Burguet

Abstract

This article aims to analyse the determinants of transport costs and to investigate their influence in international trade with a sample of disaggregate trade data. First, we estimate a transport-cost function using cross-section data on maritime and overland transport for four sectors: agro-industry, ceramic tiles, motor vehicle parts and accessories, and electrical and mechanical household appliances, obtained from interviews held with Spanish exporters and logistics operators in 2001. Second, we study the relationship between transport costs and trade and estimate the elasticity of trade with respect to transport costs for each sector. Important differences for high value- and low value-added sectors are observed. The trade-equation estimation shows that higher transport costs significantly deter trade, especially in high value-added sectors.

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Bibliographic Info

Article provided by Taylor and Francis Journals in its journal Applied Economics.

Volume (Year): 40 (2008)
Issue (Month): 24 ()
Pages: 3145-3157

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Handle: RePEc:taf:applec:v:40:y:2008:i:24:p:3145-3157

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Cited by:
  1. Königer, Jens & Busse, Matthias & Hoekstra, Ruth, 2011. "The Impact of Aid for Trade Facilitation on the Costs of Trading," Proceedings of the German Development Economics Conference, Berlin 2011 48, Verein für Socialpolitik, Research Committee Development Economics.
  2. Nguyen, Hong-Oanh & Tongzon, Jose, 2010. "Causal nexus between the transport and logistics sector and trade: The case of Australia," Transport Policy, Elsevier, vol. 17(3), pages 135-146, May.
  3. 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.
  4. Sierra-Fernández, Mª Del Pilar & Martínez-Campillo, Almudena, 2009. "Impacto del proceso de integración europea sobre las exportaciones de Castilla y León (1993-2007): un análisis econométrico a partir de la ecuación de gravedad/The Impact of the European Integrat," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 27, pages 783 (34 pá, Diciembre.

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