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The Optimal Distance to Port for Exporting Firms

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Author Info

  • Gries, Thomas
  • Naude, Wim
  • Matthee, Marianne

Abstract

Success in international trade depends, amongst other things, on distance from markets. Most new economic geography models focus on the distance between countries. In contrast much less theorizing and empirical analysis have focused on how distances within a country?for instance due to the location behaviour of exporting firms?matter to international trade. In this paper we contribute to the literature on the latter by offering a theoretical model to explain the optimal distance that an export-oriented firm would locate from a port. We present empirical evidence from South Africa in support of the model.

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File URL: http://www.wider.unu.edu/stc/repec/pdfs/rp2008/rp2008-32.pdf
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Bibliographic Info

Paper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Paper Series with number RP2008/32.

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Length: 18 pages
Date of creation: 2008
Date of revision:
Handle: RePEc:unu:wpaper:rp2008-32

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Keywords: distance; transport costs; manufactured exports;

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  1. Fujita, Masahisa & Mori, Tomoya, 1996. "The role of ports in the making of major cities: Self-agglomeration and hub-effect," Journal of Development Economics, Elsevier, vol. 49(1), pages 93-120, April.
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  11. Dasgupta, Madhuchhanda & Mishra, SK, 2004. "Least absolute deviation estimation of linear econometric models: A literature review," MPRA Paper 1781, University Library of Munich, Germany.
  12. Keith Head & John Ries & Deborah Swenson, 1994. "Agglomeration Benefits and Location Choice: Evidence from Japanese Manufacturing Investment in the United States," NBER Working Papers 4767, National Bureau of Economic Research, Inc.
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  15. Lawrence Edwards & Phil Alves, 2006. "South Africa'S Export Performance: Determinants Of Export Supply," South African Journal of Economics, Economic Society of South Africa, vol. 74(3), pages 473-500, 09.
  16. Davis, Donald R. & Weinstein, David E., 2003. "Market access, economic geography and comparative advantage: an empirical test," Journal of International Economics, Elsevier, vol. 59(1), pages 1-23, January.
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Cited by:
  1. Hernandez-Villafuerte, Karla Vanessa, 2011. "Relationship Between Spatial Price Transmission And Geographical Distance In Brazil," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114545, European Association of Agricultural Economists.
  2. Naudé, Wim & Matthee, Marianne, 2012. "Do Export Costs Matter in Determining Whether, When, and How Much African Firms Export?," Working Papers 38, JICA Research Institute.
  3. Wim Naudé & Marianne Matthee, 2011. "The impact of transport costs on new venture internationalisation," Journal of International Entrepreneurship, Springer, vol. 9(1), pages 62-89, March.
  4. Chad R. Wilkerson & Megan D. Williams, 2010. "The export potential of Tenth District states," Economic Review, Federal Reserve Bank of Kansas City, issue Q III, pages 93-114.

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