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Border effects in a free-trade zone: Evidence from European wine shipments

Author

Listed:
  • Mona Kashiha
  • Craig Depken
  • Jean-Claude Thill

Abstract

This article examines shipments of wine from European producers to 16 European ports. The research question focuses on disaggregated decisions about which port to use controlling for distance, port fixed effects and whether a national border must be crossed to reach the port. Using a conditional logit model we find heterogeneous impacts of transportation costs and national borders on port choice across shippers of various sizes. Based on the estimation results, we calculate the distance equivalents of national borders for shippers of various sizes. We show that border effects are non-trivial and asymmetric, even within the European free-trade zone.

Suggested Citation

  • Mona Kashiha & Craig Depken & Jean-Claude Thill, 2017. "Border effects in a free-trade zone: Evidence from European wine shipments," Journal of Economic Geography, Oxford University Press, vol. 17(2), pages 411-433.
    • Handle: RePEc:oup:jecgeo:v:17:y:2017:i:2:p:411-433.
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    File URL: http://hdl.handle.net/10.1093/jeg/lbw017
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    Citations

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    Cited by:

    1. David Guerrero & Jean-Claude Thill, 2023. "Port competition in contestable hinterlands: The case of preferential relationships and barrier effects in Central Europe," Post-Print hal-04166277, HAL.
    2. Federico Fantechi & Ugo Fratesi, 2023. "Border Effects on firm's productivity: The role of peripherality and territorial capital," Papers in Regional Science, Wiley Blackwell, vol. 102(3), pages 483-506, June.
    3. David Guerrero, 2018. "Impacts of transport connections on port hinterlands," Post-Print hal-01822851, HAL.
    4. Mitze, Timo & Breidenbach, Philipp, 2023. "The complex regional effects of macro-institutional shocks: Evidence from EU economic integration over three decades," Ruhr Economic Papers 1007, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    5. Mitze, Timo & Breidenbach, Philipp, 2018. "Economic integration and growth at the margin: A space-time incremental impact analysis," Ruhr Economic Papers 775, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    6. Hao Hu & Shufang Wang & Jin-liao He, 2020. "Comparative Advantages of Free Trade Port Construction in Shanghai under the Belt and Road Initiative," IJFS, MDPI, vol. 8(1), pages 1-15, February.

    More about this item

    Keywords

    Trade barriers; border effects; distance equivalents; shipping industry;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco

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