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The impact of distance in seaborne trade: An analysis of bilateral container transport flows

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  • Biermann, Franziska

Abstract

A significant part of world trade volume is transported by container ship today. Growing world trade will enforce containerization, since standardized shipment reduces transport costs. The research aim of this paper is to identify the impact of variables used in merchandise trade flow models, like GDP, or colonial ties, and especially distance, on bilateral container transport flows. Distance is one of the most important natural barriers in trade models, and despite globalization, its impact has been quite persistent in world trade. For container transport, the impact might be smaller, since it takes place especially between distant regions. The results show that the distance effect is even positive in some of the model specifications. Furthermore, compared to traditional measures of distance, the use of shipping route distances reveals noticeable differences in the impact of distance and border on container transport. The impact of other variables is comparable to empirical findings in the related literature. --

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Bibliographic Info

Paper provided by Hamburg Institute of International Economics (HWWI) in its series HWWI Research Papers with number 134.

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Date of creation: 2012
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Handle: RePEc:zbw:hwwirp:134

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Keywords: Panel Data; International Trade; Transportation; Containerization;

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References

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  1. Baldwin, Richard & Taglioni, Daria, 2006. "Gravity for Dummies and Dummies for Gravity Equations," CEPR Discussion Papers 5850, C.E.P.R. Discussion Papers.
  2. Yongcheol Shin & Laura Serlenga, 2004. "Gravity Models of the Intra-EU Trade: Application of the Hausman-Taylor Estimation in Heterogeneous Panels with Common Time-specific Factors," Econometric Society 2004 Far Eastern Meetings 671, Econometric Society.
  3. David Hummels, 2007. "Transportation Costs and International Trade in the Second Era of Globalization," Journal of Economic Perspectives, American Economic Association, vol. 21(3), pages 131-154, Summer.
  4. Andrew K. Rose, 2004. "Do We Really Know That the WTO Increases Trade?," American Economic Review, American Economic Association, vol. 94(1), pages 98-114, March.
  5. Baltagi, Badi H. & Egger, Peter & Pfaffermayr, Michael, 2003. "A generalized design for bilateral trade flow models," Economics Letters, Elsevier, vol. 80(3), pages 391-397, September.
  6. 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.
  7. Anderson, James E, 1979. "A Theoretical Foundation for the Gravity Equation," American Economic Review, American Economic Association, vol. 69(1), pages 106-16, March.
  8. David H. Romer & Jeffrey A. Frankel, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June.
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Cited by:
  1. Vöpel, Henning, 2013. "A Zidane clustering theorem: Why top players tend to play in one team and how the competitive balance can be restored," HWWI Research Papers 141, Hamburg Institute of International Economics (HWWI).

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