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Trade, Infrastructure and Transaction Costs: The Imperatives for Asian Economic Cooperation

Author

Listed:
  • De, Prabir

    () (Research and Information System for Developing Countries (RIS))

Abstract

Recent literature has emphasized the importance of transaction costs and infrastructure in explaining trade, access to markets, and regional cooperation under globalization. For most Asian countries, transaction costs are a greater barrier to trade integration than import tariffs. By estimating a structural model of economic geography using cross-country data on income, infrastructure, transaction costs and trade of selected Asian economies, this paper shows that the transaction costs is statistically significant and important determinant in explaining variation in trade in Asia.

Suggested Citation

  • De, Prabir, 2006. "Trade, Infrastructure and Transaction Costs: The Imperatives for Asian Economic Cooperation," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 21, pages 708-735.
  • Handle: RePEc:ris:integr:0375
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    Citations

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    Cited by:

    1. Dettmer, Bianka & Freytag, Andreas & Draper, Peter, 2014. "Air Cargo beyond Trade Barriers in Africa," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 29, pages 95-138.
    2. Prabir De, 2009. "Regional Cooperation for Regional Infrastructure Development : Challenges and Policy Options for South Asia," Development Economics Working Papers 22988, East Asian Bureau of Economic Research.
    3. repec:ebd:wpaper:159 is not listed on IDEAS
    4. Prabir De & Bhisma Rout, 2008. "Transportation Cost and Trade Competitiveness : Empirical Evidence from India," Trade Working Papers 22099, East Asian Bureau of Economic Research.
    5. Lahiri, Bidisha & Masjidi, Feroz K., 2012. "Landlocked Countries: A Way to Integrate with Coastal Economies," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 27, pages 505-519.
    6. Hanousek, Jan & Kočenda, Evžen, 2014. "Factors of trade in Europe," Economic Systems, Elsevier, vol. 38(4), pages 518-535.
    7. Chi, Junwook, 2016. "Exchange rate and transport cost sensitivities of bilateral freight flows between the US and China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 89(C), pages 1-13.
    8. Nagesh Kumar & Prabir De, 2008. "East Asian Infrastructure Development in a Comparative Global Perspective : An Analysis of RIS Infrastructure Index," Development Economics Working Papers 22114, East Asian Bureau of Economic Research.

    More about this item

    Keywords

    Asia; Gravity Model; Infrastructure; Transaction Costs; Trade;

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F10 - International Economics - - Trade - - - General
    • F15 - International Economics - - Trade - - - Economic Integration

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