Recent Development in Infrastructure and Its Impact on Agricultural and Non-agricultural Trade
AbstractThe main objective of this paper is to estimate the relationship between telecommunication and the volume of trade. More specifically, we estimate the effect of improved telecommunication on bilateral trade of agricultural and non-agricultural goods among the OECD countries in each year from 1997 to 2001.The results indicate that per capita GDPs, geographical sizes, and telecommunication investments in both exporting and importing countries are significant and positively related to the value of bilateral trade between them. In agricultural trade, the investment in telecommunication in importing countries is more important than that of exporting countries. The geographical size of the exporting country is more important in agricultural trade than that of the importing country; but it is not the case in non-agricultural trade. This indicates that land is one of essential factors in agricultural trade. In non-agricultural trade, telecommunication investment of the exporting country is more important than that of the importing country. Moreover, the size of the selling market (exporting country) is more important than that of the importing country, relative to non-agricultural trade. In addition, the distance between trading countries is significant and negatively related to the bilateral trade value. The other dummy variables, representing the EU, NAFTA, common language, and common border, are also significant and positively related to bilateral trade values.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2005 Annual meeting, July 24-27, Providence, RI with number 19525.
Date of creation: 2005
Date of revision:
Contact details of provider:
Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Robert C. Feenstra & James R. Markusen & Andrew K. Rose, 2001. "Using the gravity equation to differentiate among alternative theories of trade," Canadian Journal of Economics, Canadian Economics Association, vol. 34(2), pages 430-447, May.
- Baldwin, Richard, 1990. "Hysteresis in Trade," Empirical Economics, Springer, vol. 15(2), pages 127-42.
- David H. Romer & Jeffrey A. Frankel, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June.
- Casas, F R, 1983. "International Trade with Produced Transport Services," Oxford Economic Papers, Oxford University Press, vol. 35(1), pages 89-109, March.
- Stephen Martin, 2002. "Sunk Cost and Entry," Review of Industrial Organization, Springer, vol. 20(4), pages 291-304, June.
- Falvey, Rodney E, 1976. "Transport Costs in the Pure Theory of International Trade," Economic Journal, Royal Economic Society, vol. 86(343), pages 536-50, September.
- Freund, Caroline L. & Weinhold, Diana, 2004. "The effect of the Internet on international trade," Journal of International Economics, Elsevier, vol. 62(1), pages 171-189, January.
- Barry Eichengreen & Douglas A. Irwin, 1998.
"The Role of History in Bilateral Trade Flows,"
in: The Regionalization of the World Economy, pages 33-62
National Bureau of Economic Research, Inc.
- Bougheas, Spiros & Demetriades, Panicos O. & Morgenroth, Edgar L. W., 1999.
"Infrastructure, transport costs and trade,"
Journal of International Economics,
Elsevier, vol. 47(1), pages 169-189, February.
- Spiros Bougheas & Panicos Demetriades & Edgar Morgenroth, 1996. "Infrastructure, Transport Costs and Trade," Keele Department of Economics Discussion Papers (1995-2001) 96/7, Department of Economics, Keele University.
- Bergstrand, Jeffrey H, 1985. "The Gravity Equation in International Trade: Some Microeconomic Foundations and Empirical Evidence," The Review of Economics and Statistics, MIT Press, vol. 67(3), pages 474-81, August.
- Richard Baldwin, 1988.
"Hysteresis In Import Prices: The Beachhead Effect,"
NBER Working Papers
2545, National Bureau of Economic Research, Inc.
- Stephen D. Oliner & Daniel E. Sichel, 2000.
"The Resurgence of Growth in the Late 1990s: Is Information Technology the Story?,"
Journal of Economic Perspectives,
American Economic Association, vol. 14(4), pages 3-22, Fall.
- Stephen D. Oliner & Daniel E. Sichel, 2000. "The resurgence of growth in the late 1990s: is information technology the story?," Proceedings, Federal Reserve Bank of San Francisco.
- Stephen D. Oliner & Daniel E. Sichel, 2000. "The resurgence of growth in the late 1990s: is information technology the story?," Finance and Economics Discussion Series 2000-20, Board of Governors of the Federal Reserve System (U.S.).
- Bean, Charles R, 1987.
"Sterling Misalignment and British Trade Performance,"
CEPR Discussion Papers
177, C.E.P.R. Discussion Papers.
- Charles Bean, 1988. "Sterling Misalignment and British Trade Performance," NBER Chapters, in: Misalignment of Exchange Rates, pages 39-76 National Bureau of Economic Research, Inc.
- Roberts, Mark J & Tybout, James R, 1997. "The Decision to Export in Colombia: An Empirical Model of Entry with Sunk Costs," American Economic Review, American Economic Association, vol. 87(4), pages 545-64, September.
- Gramlich, Edward M, 1994. "Infrastructure Investment: A Review Essay," Journal of Economic Literature, American Economic Association, vol. 32(3), pages 1176-96, September.
- Richard Baldwin & Paul R. Krugman, 1986.
"Persistent Trade Effects of Large Exchage Rate Shocks,"
NBER Working Papers
2017, National Bureau of Economic Research, Inc.
- Baldwin, Richard & Krugman, Paul, 1989. "Persistent Trade Effects of Large Exchange Rate Shocks," The Quarterly Journal of Economics, MIT Press, vol. 104(4), pages 635-54, November.
- Kevin J. Stiroh, 2001. "Investing in information technology: productivity payoffs for U.S. industries," Current Issues in Economics and Finance, Federal Reserve Bank of New York, vol. 7(Jun).
- Canning, David, 1998. "A database of world infrastructure stocks, 1950-95," Policy Research Working Paper Series 1929, The World Bank.
- Anderson, James E, 1979. "A Theoretical Foundation for the Gravity Equation," American Economic Review, American Economic Association, vol. 69(1), pages 106-16, March.
- David A. Aschauer, 1989. "Public investment and productivity growth in the Group of Seven," Economic Perspectives, Federal Reserve Bank of Chicago, issue Sep, pages 17-25.
- Keith Head & John Ries, 2001. "Increasing Returns versus National Product Differentiation as an Explanation for the Pattern of U.S.-Canada Trade," American Economic Review, American Economic Association, vol. 91(4), pages 858-876, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If references are entirely missing, you can add them using this form.