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Exports and Logistics

Author

Listed:
  • Alberto Behar
  • Benjamin D. Nelson
  • Phil Manners

Abstract

Do better trade logistics reduce trade costs, raising a country's exports? Yes, but the magnitude of the effect depends on country size. Applying a new gravity model to a comprehensive logistics index, we find that an average-sized country would raise exports by about 46% after a one-standard deviation improvement in logistics. Most countries are much smaller than average however, so the typical effect is only 6%. This difference is chiefly due to multilateral resistance, which stresses that bilateral trade costs relative to multilateral trade costs matter for bilateral exports. Our method also distinguishes between the effects of logistics on the intensive margin (exports per firm) and the extensive margin (the number of exporting firms) of trade.

Suggested Citation

  • Alberto Behar & Benjamin D. Nelson & Phil Manners, 2009. "Exports and Logistics," Economics Series Working Papers 439, University of Oxford, Department of Economics.
    • Handle: RePEc:oxf:wpaper:439
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    Citations

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    Cited by:

    1. Francois, Joseph & Manchin, Miriam, 2013. "Institutions, Infrastructure, and Trade," World Development, Elsevier, vol. 46(C), pages 165-175.
    2. Márquez-Ramos, Laura & Martínez-Zarzoso, Inmaculada & Suárez-Burguet, Celestino, 2012. "Trade policy versus trade facilitation: An application using good old OLS," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 6, pages 1-38.
    3. César Ducruet & Hidekazu Itoh & Justin Berli, 2020. "Urban gravity in the global container shipping network," Post-Print halshs-02588449, HAL.
    4. Yasir Khan & Taimoor Hassan & Cai Shukai & Hana Oubaih & Muhammad Nisar Khan & Jawed Kootwal & Ubaid Ur Rahman Rehimi, 2022. "The nexus between infrastructure development, economic growth, foreign direct investment, and trade: an empirical investigation from China’s regional trade data," SN Business & Economics, Springer, vol. 2(7), pages 1-31, July.
    5. Park, Soonchan, 2020. "Quality of transport infrastructure and logistics as source of comparative advantage," Transport Policy, Elsevier, vol. 99(C), pages 54-62.
    6. Ducruet, César & Itoh, Hidekazu & Berli, Justin, 2020. "Urban gravity in the global container shipping network," Journal of Transport Geography, Elsevier, vol. 85(C).
    7. Portugal-Perez, Alberto & Wilson, John S., 2012. "Export Performance and Trade Facilitation Reform: Hard and Soft Infrastructure," World Development, Elsevier, vol. 40(7), pages 1295-1307.
    8. Nelgen, Signe & Anderson, Kym, 2011. "Projecting agricultural distortions for a 2030 GTAP database," Conference papers 332094, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    9. Soriano, Bárbara & Garrido, Alberto, 2015. "The role of private sector in development: The relation between public-private investment in infrastructure and agricultural exports in developing countries," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 15(02).
    10. Alberto Behar & Anthony J. Venables, 2011. "Transport Costs and International Trade," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 5, Edward Elgar Publishing.
    11. Osman, Rehab Osman Mohamed, 2012. "The EU Economic Partnership Agreements with Southern Africa: a computable general equilibrium analysis," Economics PhD Theses 0412, Department of Economics, University of Sussex Business School.
    12. Thomas Orliac, 2012. "The economics of trade facilitation [L'économie de la facilitation des échanges]," SciencePo Working papers Main tel-03681980, HAL.
    13. Sören Prehn & Bernhard Brümmer & Stanley R. Thompson, 2015. "Payment decoupling and intra-European calf trade," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 42(4), pages 625-650.
    14. Zahid Hussain & Nadia Hanif & Wasim Abbas Shaheen & Muhammad Nadeem, 2019. "Empirical Analysis of Multiple Infrastructural Covariates: An Application of Gravity Model on Asian Economies," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 9(3), pages 299-317, March.
    15. Rosa Puertas & Luisa Martí & Leandro García, 2014. "Logistics performance and export competitiveness: European experience," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 41(3), pages 467-480, August.

    More about this item

    Keywords

    Logistics; Trade facilitation; Gravity; Firm heterogeneity; Multilateral resistance;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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