Exports and Logistics
AbstractDo better trade logistics reduce trade costs, raising a country's exports?� Yes, but the magnitude of the effect depends on country size.� Applying a new gravity model to a comprehensive logistics index, we find that an average-sized country would raise exports by about 46% after a one-standard deviation improvement in logistics.� Most countries are much smaller than average however, so the typical effect is only 6%.� This difference is chiefly due to multilateral resistance, which stresses that bilateral trade costs relative to multilateral trade costs matter for bilateral exports.� Our method also distinguishes between the effects of logistics on the intensive margin (exports per firm) and the extensive margin (the number of exporting firms) of trade.
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Bibliographic InfoPaper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number 439.
Date of creation: 01 Jul 2009
Date of revision:
Logistics; Trade facilitation; Gravity; Firm heterogeneity; Multilateral resistance;
Find related papers by JEL classification:
- F10 - International Economics - - Trade - - - General
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
- O24 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-07-28 (All new papers)
- NEP-CSE-2009-07-28 (Economics of Strategic Management)
- NEP-INT-2009-07-28 (International Trade)
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