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How do transport costs affect firms’ exports? Evidence from a vanishing bridge

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  • Volpe Martincus, Christian
  • Carballo, Jerónimo
  • Garcia, Pablo M.
  • Graziano, Alejandro

Abstract

In this paper we provide estimates of the effects of international transport costs on firms’ exports and disentangle the channels of these effects. In so doing, we use a unique dataset consisting of highly disaggregated transaction-level trade and transport cost data and, in order to account for endogeneity, we exploit the exogenous variation in these costs associated with the non-trade related closure of the main bridge connecting two countries.

Suggested Citation

  • Volpe Martincus, Christian & Carballo, Jerónimo & Garcia, Pablo M. & Graziano, Alejandro, 2014. "How do transport costs affect firms’ exports? Evidence from a vanishing bridge," Economics Letters, Elsevier, vol. 123(2), pages 149-153.
    • Handle: RePEc:eee:ecolet:v:123:y:2014:i:2:p:149-153
    DOI: 10.1016/j.econlet.2014.01.030
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    References listed on IDEAS

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    1. Martin, Julien, 2012. "Markups, quality, and transport costs," European Economic Review, Elsevier, vol. 56(4), pages 777-791.
    2. Christian Volpe Martincus & Jerónimo Carballo & Pablo M. Garcia, 2012. "Public programmes to promote firms’ exports in developing countries: are there heterogeneous effects by size categories?," Applied Economics, Taylor & Francis Journals, vol. 44(4), pages 471-491, February.
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    Cited by:

    1. Dina Salimova & Yuri Ponomarev, 2021. "Transport infrastructure and geography of regional export in Russia," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 63, pages 51-75.
    2. Bastos, Paulo & Silva, Joana, 2010. "The quality of a firm's exports: Where you export to matters," Journal of International Economics, Elsevier, vol. 82(2), pages 99-111, November.
    3. Wang, Cong & Yang, Hangjun & Yuan, Hang, 2018. "The impact of railway reform on corporate export: The case of China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 118(C), pages 627-647.
    4. Xu, Hangtian, 2016. "Domestic railroad infrastructure and exports: Evidence from the Silk Route," China Economic Review, Elsevier, vol. 41(C), pages 129-147.
    5. Jerónimo Carballo & Georg Schaur & Christian Volpe Martincus, 2016. "Posts as Trade Facilitators," IDB Publications (Working Papers) 94576, Inter-American Development Bank.
    6. Sheila Kaminchia, 2020. "Effect of transit road quality on trade costs in East Africa," African Development Review, African Development Bank, vol. 32(3), pages 316-326, September.
    7. Hayakawa, Kazunobu & Keola, Souknilanh & Sudsawasd, Sasatra & Yamanouchi, Kenta, 2022. "Impacts of an international bridge on households: Evidence from Thailand," Journal of Asian Economics, Elsevier, vol. 83(C).
    8. Jarosław M. Nazarczuk & Stanisław Umiński & Tomasz Brodzicki, 2020. "Determinants of the spatial distribution of exporters in regions: the role of ownership," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 64(3), pages 547-574, June.
    9. Abban, Stanley, 2020. "The impact of institutions and infrastructure on intra-regional trade: The Economic Community of West African States," MPRA Paper 104382, University Library of Munich, Germany.
    10. Marcelo Olarreaga, 2016. "Trade, Infrastructure, and Development," ADBI Working Papers 626, Asian Development Bank Institute.
    11. Volpe Martincus, Christian & Carballo, Jerónimo & Cusolito, Ana, 2017. "Roads, exports and employment: Evidence from a developing country," Journal of Development Economics, Elsevier, vol. 125(C), pages 21-39.
    12. Carballo, Jerónimo & Schaur, Georg & Volpe Martincus, Christian, 2016. "Posts as Trade Facilitators," IDB Publications (Working Papers) 7681, Inter-American Development Bank.

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    Keywords

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    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation

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