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Communication Costs and Agro-Food Trade in OECD Countries

  • Bojnec, Stefan
  • Ferto, Imre

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

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File URL: http://purl.umn.edu/50937
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Paper provided by Agricultural Economics Society in its series 83rd Annual Conference, March 30-April 1, 2009, Dublin, Ireland with number 50937.

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Date of creation: 01 Apr 2009
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Handle: RePEc:ags:aesc09:50937
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  1. Andrew K. Rose, 2002. "Do We Really KNow that the WTO Increases Trade?," Working Papers 182002, Hong Kong Institute for Monetary Research.
  2. Peter Egger, . "An Econometric View on the Estimation of Gravity Models and the Calculation of Trade Potentials," WIFO Working Papers 141, WIFO.
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  6. James E. Anderson & Eric van Wincoop, 2004. "Trade Costs," Journal of Economic Literature, American Economic Association, vol. 42(3), pages 691-751, September.
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  8. Joseph Francois & Miriam Manchin, 2007. "Institutions, Infrastructure, and Trade," Working Papers 77, CENTRE FOR THE STUDY OF ECONOMIC AND SOCIAL CHANGE IN EUROPE,School of Slavonic and East European Studies,University College London (SSEES,UCL).
  9. Frankel, Jeffrey & Rose, Andrew K., 2001. "An Estimate of the Effect of Common Currencies on Trade and Income," Working Paper Series rwp01-013, Harvard University, John F. Kennedy School of Government.
  10. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
  11. Laszlo Matyas, 1997. "Proper Econometric Specification of the Gravity Model," The World Economy, Wiley Blackwell, vol. 20(3), pages 363-368, 05.
  12. James E. Rauch, 2001. "Business and Social Networks in International Trade," Journal of Economic Literature, American Economic Association, vol. 39(4), pages 1177-1203, December.
  13. Fink, Carsten & Mattoo, Aaditya & Neagu, Ileana Cristina, 2005. "Assessing the impact of communication costs on international trade," Journal of International Economics, Elsevier, vol. 67(2), pages 428-445, December.
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