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Recent Development in Infrastructure and Its Impact on Agricultural and Non-agricultural Trade

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  • Park, Mi-Hee
  • Koo, Won W.

Abstract

The 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.

Suggested Citation

  • Park, Mi-Hee & Koo, Won W., 2005. "Recent Development in Infrastructure and Its Impact on Agricultural and Non-agricultural Trade," 2005 Annual meeting, July 24-27, Providence, RI 19525, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea05:19525
    DOI: 10.22004/ag.econ.19525
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    Cited by:

    1. Biswas, Trina & Kennedy, P. Lynn, 2016. "The Effect of the Internet on Bilateral Trade," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 229994, Southern Agricultural Economics Association.
    2. Burcu Ozcan, 2018. "Information and communications technology (ICT) and international trade: evidence from Turkey," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 8(1), pages 93-113, April.
    3. Al-Maamari, Aaisha & Countryman, Amanda M., 2021. "Infrastructure and Agricultural Trade in North and Latin America," Journal of Food Distribution Research, Food Distribution Research Society, vol. 52(2), July.
    4. Tong, Tingting & Yu, Edward & Roberts, Roland K., 2014. "Dynamics of Transport Infrastructure, Exports and Economic Growth in the United States," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 53(1).
    5. Burcu Ozcan & Hiranya Nath, 2016. "Information and Communication Technology (ICT) and International Trade: Evidence from Turkey," Working Papers 1609, Sam Houston State University, Department of Economics and International Business.

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