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Intangible Barriers to International Trade: A Sectoral Approach

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Author Info

  • Jan M�hlmann

    (VU University Amsterdam)

  • Sjef Ederveen

    (Ministry of Economic Affairs)

  • Henri L.F. de Groot

    (VU University Amsterdam)

  • Gert-Jan M. Linders

    (VU University Amsterdam)

Abstract

This paper studies the importance of intangible barriers to trade in explaining variation in disaggregate international trade. The analysis is based on a sample of 55 countries for the year 2000. We explicitly focus on the importance of institutional and cultural dimensions of distance. Our results reveal there is substantial heterogeneity in the impact of intangible barriers for different product groups. More specifically, we find that cultural differences do not affect total trade significantly, whereas trade in homogeneous goods is significantly negatively affected. A possible explanation for this pattern is that the substitution effect between trade and FDI is stronger for more differentiated products.

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Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 09-021/3.

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Date of creation: 03 Mar 2009
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Handle: RePEc:dgr:uvatin:20090021

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Web page: http://www.tinbergen.nl

Related research

Keywords: bilateral trade; gravity model; intangible barriers; cultural distance; sectoral trade;

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Cited by:
  1. Tamini, Lota Dabio, 2012. "Optimal quality choice under uncertainty on market development," Working Papers 148589, Structure and Performance of Agriculture and Agri-products Industry (SPAA).
  2. Maureen B.M. Lankhuizen & Thomas de Graaff & Henri L.F. de Groot, 2012. "Product Heterogeneity, Intangible Barriers and Distance Decay: The Effect of Multiple Dimensions of Distance on Trade across Different Product Categories," Tinbergen Institute Discussion Papers 12-065/3, Tinbergen Institute.
  3. Henri de Groot & Jan Möhlmann, 2013. "The effects of outsourcing on firm productivity: Evidence from microdata in the Netherlands," CPB Discussion Paper 250, CPB Netherlands Bureau for Economic Policy Analysis.
  4. Tamini, Lota D., 2012. "Optimal quality choice under uncertainty on market development," MPRA Paper 40845, University Library of Munich, Germany.

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