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Communication Costs and Agro-Food Trade in OECD Countries

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  • Bojnec, Stefan
  • Ferto, Imre

Abstract

The paper analyses the effects of communication costs for agro-food trade in OECD countries between 1995 and 2003 using gravity model. We find that the link between the communication costs and agro-food trade flows in developed countries is significantly stronger for agricultural than for food products. The improved communication services reduce trade transaction costs. The estimations also confirmed importance of the economy size, level of development in importer countries, and trade distance. The other traditional gravity variables like contiguity, language and regional free trade agreements have significant impacts in the majority of specifications

Suggested Citation

  • Bojnec, Stefan & Ferto, Imre, 2009. "Communication Costs and Agro-Food Trade in OECD Countries," 83rd Annual Conference, March 30-April 1, 2009, Dublin, Ireland 50937, Agricultural Economics Society.
  • Handle: RePEc:ags:aesc09:50937
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    File URL: http://purl.umn.edu/50937
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    References listed on IDEAS

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    1. Francois, Joseph & Manchin, Miriam, 2013. "Institutions, Infrastructure, and Trade," World Development, Elsevier, vol. 46(C), pages 165-175.
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    More about this item

    Keywords

    Communication costs; Agro-food trade; Gravity model; International Relations/Trade; F14; F23; Q17;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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