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Communication Costs and Agro-Food Trade in OECD Countries

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Author Info
Bojnec, Stefan
Ferto, Imre

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Abstract

The paper analyses the effects of communication costs for agro-food trade in OECD countries between 1995 and 2003 using gravity model. We find that the link between the communication costs and agro-food trade flows in developed countries is significantly stronger for agricultural than for food products. The improved communication services reduce trade transaction costs. The estimations also confirmed importance of the economy size, level of development in importer countries, and trade distance. The other traditional gravity variables like contiguity, language and regional free trade agreements have significant impacts in the majority of specifications

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Publisher Info
Paper provided by Agricultural Economics Society in its series 83rd Annual Conference, March 30-April 1, 2009, Dublin, Ireland with number 50937.

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Date of creation: 01 Apr 2009
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Handle: RePEc:ags:aesc09:50937

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Related research
Keywords: Communication costs; Agro-food trade; Gravity model; International Relations/Trade; F14; F23; Q17;

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  1. James E. Rauch, 2001. "Business and Social Networks in International Trade," Journal of Economic Literature, American Economic Association, vol. 39(4), pages 1177-1203, December. [Downloadable!] (restricted)
  2. James E. Anderson & Eric van Wincoop, 2004. "Trade Costs," NBER Working Papers 10480, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  3. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January. [Downloadable!] (restricted)
  4. Linghui Tang, 2006. "Communication Costs and Trade of Differentiated Goods," Review of International Economics, Blackwell Publishing, vol. 14(1), pages 54-68, 02. [Downloadable!] (restricted)
  5. James E. Anderson & Douglas Marcouiller, 2002. "Insecurity And The Pattern Of Trade: An Empirical Investigation," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 342-352, May. [Downloadable!] (restricted)
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  6. 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. [Downloadable!] (restricted)
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This page was last updated on 2009-11-26.

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