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Road and Maritime Transport Costs: A Comparative Analysis of Spanish Exports to Poland and Turkey

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Abstract

In this paper, we analyze the determinants of maritime and road transport costs for Spanish exports to Poland and Turkey and investigate the different effects of these costs on international trade. First, we investigate the extent to which maritime and road transport costs depend on different factors such as unit values, distances, transport conditions, service structures, and service quality. Second, we analyze the relative importance of road and maritime transport costs as determinants of trade flows. The data on transport costs are drawn from a new database compiled from primary data sources. The main results of this investigation identify the central variables influencing road and maritime transportation costs: for both modes, transport conditions are strong determinants, whereas efficiency and service quality are more important for maritime transport costs, and geographical distance is more important for road transport. Road and maritime transport costs are important explanatory factors of exports and they seem to deter trade to a greater extent than road or maritime transit time when considered endogenously determined.

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Bibliographic Info

Paper provided by Ibero-America Institute for Economic Research in its series Ibero America Institute for Econ. Research (IAI) Discussion Papers with number 138.

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Length: 36 pages
Date of creation: 15 Mar 2006
Date of revision:
Handle: RePEc:got:iaidps:138

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Keywords: Transport costs; transport mode; Spanish exports; international trade;

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  1. Ricardo J S�nchez & Jan Hoffmann & Alejandro Micco & Georgina V Pizzolitto & Mart�n Sgut & Gordon Wilmsmeier, 2003. "Port Efficiency and International Trade: Port Efficiency as a Determinant of Maritime Transport Costs," Maritime Economics and Logistics, Palgrave Macmillan, vol. 5(2), pages 199-218, June.
  2. Ximena Clark & David Dollar & Alejandro Micco, 2004. "Port Efficiency, Maritime Transport Costs and Bilateral Trade," NBER Working Papers 10353, National Bureau of Economic Research, Inc.
  3. Alan V. Deardorff, 1995. "Determinants of Bilateral Trade: Does Gravity Work in a Neoclassical World?," NBER Working Papers 5377, National Bureau of Economic Research, Inc.
  4. Limao, Nuno & Venables, Anthony J., 1999. "Infrastructure, geographical disadvantage, and transport costs," Policy Research Working Paper Series 2257, The World Bank.
  5. I Mart�nez-Zarzoso & L Garc�a-Men�ndez & C Su�rez-Burguet, 2003. "Impact of Transport Costs on International Trade: The Case of Spanish Ceramic Exports," Maritime Economics and Logistics, Palgrave Macmillan, vol. 5(2), pages 179-198, June.
  6. James E. Anderson & Eric van Wincoop, 2001. "Gravity with Gravitas: A Solution to the Border Puzzle," NBER Working Papers 8079, National Bureau of Economic Research, Inc.
  7. 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.
  8. Peter Egger, 2005. "On the Impact of Transportation Costs on Trade in a Multilateral World," Southern Economic Journal, Southern Economic Association, vol. 71(3), pages 592-606, January.
  9. James E. Anderson & Eric van Wincoop, 2004. "Trade Costs," NBER Working Papers 10480, National Bureau of Economic Research, Inc.
  10. Inmaculada Martinez-Zarzoso & Celestino Suarez-Burguet, 2005. "Transport costs and trade: Empirical evidence for Latin American imports from the European union," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 14(3), pages 353-371.
  11. Frankel, Jeffrey & Stein, Ernesto & Wei, Shang-jin, 1995. "Trading blocs and the Americas: The natural, the unnatural, and the super-natural," Journal of Development Economics, Elsevier, vol. 47(1), pages 61-95, June.
  12. Bergstrand, Jeffrey H, 1989. "The Generalized Gravity Equation, Monopolistic Competition, and the Factor-Proportions Theory in International Trade," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 143-53, February.
  13. Alejandro Micco & Natalia Perez, 2002. "Determinants of Maritime Transport Costs," Research Department Publications 4247, Inter-American Development Bank, Research Department.
  14. Jan Hoffmann, 2001. "Latin American Ports: Results and Determinants of Private Sector Participation," Maritime Economics and Logistics, Palgrave Macmillan, vol. 3(2), pages 221-241, June.
  15. J. A. Hausman, 1976. "Specification Tests in Econometrics," Working papers 185, Massachusetts Institute of Technology (MIT), Department of Economics.
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Cited by:
  1. Pauline Bourgeon & Jean-Charles Bricongne & Guillaume Gaulier, 2012. "Financing time to trade : Evidence from French firms," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00677343, HAL.
  2. Stefan Vannoni, 2007. "The influence of Free-Trade on the environmental effects of transportation. Scale-, Technique- and Composition-Effects," Working papers 2007/10, Faculty of Business and Economics - University of Basel.

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