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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Find related papers by JEL classification: F1 - International Economics - - Trade O1 - Economic Development, Technological Change, and Growth - - Economic Development O55 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Africa
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James E. Anderson & Eric van Wincoop, 2004.
"Trade Costs,"
NBER Working Papers
10480, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions:
James E. Anderson & Eric van Wincoop, 2004.
"Trade Costs,"
Journal of Economic Literature,
American Economic Association, vol. 42(3), pages 691-751, September.
[Downloadable!] (restricted)