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Exports and Logistics

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  • Alberto Behar
  • Benjamin D. Nelson

Abstract

Do 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 Info

Paper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number 439.

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Date of creation: 01 Jul 2009
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Handle: RePEc:oxf:wpaper:439

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Related research

Keywords: Logistics; Trade facilitation; Gravity; Firm heterogeneity; Multilateral resistance;

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Cited by:
  1. Francois, Joseph & Manchin, Miriam, 2013. "Institutions, Infrastructure, and Trade," World Development, Elsevier, Elsevier, vol. 46(C), pages 165-175.
  2. Alberto Behar, 2010. "The impact of North-South and South-South trade agreements on bilateral trade," Economics Series Working Papers CSAE WPS/2010-30, University of Oxford, Department of Economics.
  3. Márquez-Ramos, Laura & Martínez-Zarzoso, Inmaculada & Suárez-Burguet, Celestino, 2012. "Trade policy versus trade facilitation: An application using good old OLS," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy, vol. 6(11), pages 1-38.
  4. Portugal-Perez, Alberto & Wilson, John S., 2012. "Export Performance and Trade Facilitation Reform: Hard and Soft Infrastructure," World Development, Elsevier, Elsevier, vol. 40(7), pages 1295-1307.
  5. Rosa Puertas & Luisa Martí & Leandro García, 2014. "Logistics performance and export competitiveness: European experience," Empirica, Springer, Springer, vol. 41(3), pages 467-480, August.
  6. Prehn, Sören & Brümmer, Bernhard & Thompson, Stanley R., 2010. "Payment decoupling and the intra-European calf trade," DARE Discussion Papers 1008, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).

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