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Examining the distance puzzle in the global coffee trade

Author

Listed:
  • Anthony Rezitis
  • Leonidas Zangelidis
  • Spyridon Karytsas

Abstract

We examine whether the impact of transportation costs originating from physical distance in the global coffee trade does not decrease over time (i.e., “the distance puzzle†) by applying a gravity model from 2009 to 2019. We also consider the effect of cultural distance stemming from colonial dependency, common colonizer, and common language. Our results reveal that transportation costs are initially stable but show a negative trend in the long run, particularly post-2015. Moreover, colonial dependency and common colonizers significantly increased the coffee trade.

Suggested Citation

  • Anthony Rezitis & Leonidas Zangelidis & Spyridon Karytsas, 2025. "Examining the distance puzzle in the global coffee trade," Economics and Business Letters, Oviedo University Press, vol. 14(2), pages 88-94.
  • Handle: RePEc:ove:journl:aid:21135
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    File URL: https://reunido.uniovi.es/index.php/EBL/article/view/21135
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    References listed on IDEAS

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    1. James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March.
    2. Jemal Abafita & Tekilu Tadesse & Robert Read, 2021. "Determinants of global coffee trade: Do RTAs matter? Gravity model analysis," Cogent Economics & Finance, Taylor & Francis Journals, vol. 9(1), pages 1892925-189, January.
    3. Anne-Célia Disdier & Keith Head, 2008. "The Puzzling Persistence of the Distance Effect on Bilateral Trade," The Review of Economics and Statistics, MIT Press, vol. 90(1), pages 37-48, February.
    4. 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.
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