On the Geography of Trade: Distance is Alive and Well
It has been widely argued that, with the decline in trade costs (for example, transport and communication costs), the importance of distance has declined over time. If so, this would be a boon for countries located far from the main centers of econ...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, D.C.
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2004/02/4044286/geography-trade-distance-alive-well http://hdl.handle.net/10986/14727 |
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okr-10986-147272021-04-23T14:03:20Z On the Geography of Trade: Distance is Alive and Well Carrere, Celine Schiff, Maurice ABSOLUTE VALUE ACCESS TO TECHNOLOGY AGGREGATE TRADE AIR CARGO AIR CARGO RATES AIR TRANSPORT ANDEAN PACT APPAREL BILATERAL TRADE CAPITAL FLOWS CARTELS CIF COMMODITIES COMPETITIVENESS CONTAINERIZATION CUSTOMS DWT ECONOMIC ACTIVITY ECONOMIC GEOGRAPHY ECONOMIC HISTORIANS ELASTICITY EMPIRICAL STUDIES EXCHANGE RATE EXCHANGE RATE POLICY EXPORTS FREIGHT COSTS FREIGHT RATES FUEL TRADE GDP GLOBAL COMPETITIVENESS GRAVITY MODEL GRAVITY MODELS IMPACT OF TRADE INTERNATIONAL TRADE INVENTORY INVENTORY MANAGEMENT LABOR COSTS LOADING LORENZ CURVE MACROECONOMICS MANUFACTURING MARKET STRUCTURE OCEAN FREIGHT OCEAN TRANSPORT OIL ORDERING PORT CHARGES PORT INFRASTRUCTURE PRODUCERS REGIONAL INTEGRATION REGIONAL TRADE REGIONALIZATION RESEARCH AGENDA SHIPMENTS SHIPPING SHIPPING CHARGES SHIPPING COSTS SHIPPING ROUTES SHIPS TIME SERIES TONNAGE TRADE BLOC TRADE BLOCS TRADE COSTS TRADE DATA TRADE FLOWS TRADE LIBERALIZATION TRADE PATTERNS TRAMP SHIPPING TRANSPORT COSTS TRANSPORT TECHNOLOGIES UNILATERAL TRADE UNILATERAL TRADE LIBERALIZATION VALUE OF EXPORTS VALUE OF IMPORTS VESSELS VOLUME OF TRADE WAGES WORLD TRADE DISTANCES TRANSPORT TRADE REGIONALIZATION TRANSPORT COSTS COMMUNICATION COSTS CUSTOMS EXCHANGE RATE POLICY CONSUMPTION It has been widely argued that, with the decline in trade costs (for example, transport and communication costs), the importance of distance has declined over time. If so, this would be a boon for countries located far from the main centers of economic activity. The authors examine the evolution of countries' distance of trade (DOT) from 1962-2000. They find that the DOT falls over time for the average country in the world, and that the number of countries with declining DOT is close to double those with increasing DOT. Thus, distance has become more important over time for a majority of countries. The authors examine various hypotheses to explain this phenomenon. One conclusion is that the evolution of the DOT is unrelated to that of the overall trade costs but depends on the relative evolution of its components. The authors also examine the impact on the DOT of changes in production, customs, and domestic transport costs; air relative to land and ocean transport costs; competition, exchange rate policy, regional integration, uneven growth, and counter-season trade; and just-in-time inventory management. An interesting finding is that, though regional integration has a negative impact on the DOT, the countries forming trade blocs had a DOT that was growing faster or falling more slowly than that of excluded countries. The authors also offer some insights into how these changes may affect the home bias in consumption and the border effect. 2013-08-01T16:28:40Z 2013-08-01T16:28:40Z 2004-02 http://documents.worldbank.org/curated/en/2004/02/4044286/geography-trade-distance-alive-well http://hdl.handle.net/10986/14727 English en_US Policy Research Working Paper;No.3206 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, D.C. Publications & Research :: Policy Research Working Paper Publications & Research |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ABSOLUTE VALUE ACCESS TO TECHNOLOGY AGGREGATE TRADE AIR CARGO AIR CARGO RATES AIR TRANSPORT ANDEAN PACT APPAREL BILATERAL TRADE CAPITAL FLOWS CARTELS CIF COMMODITIES COMPETITIVENESS CONTAINERIZATION CUSTOMS DWT ECONOMIC ACTIVITY ECONOMIC GEOGRAPHY ECONOMIC HISTORIANS ELASTICITY EMPIRICAL STUDIES EXCHANGE RATE EXCHANGE RATE POLICY EXPORTS FREIGHT COSTS FREIGHT RATES FUEL TRADE GDP GLOBAL COMPETITIVENESS GRAVITY MODEL GRAVITY MODELS IMPACT OF TRADE INTERNATIONAL TRADE INVENTORY INVENTORY MANAGEMENT LABOR COSTS LOADING LORENZ CURVE MACROECONOMICS MANUFACTURING MARKET STRUCTURE OCEAN FREIGHT OCEAN TRANSPORT OIL ORDERING PORT CHARGES PORT INFRASTRUCTURE PRODUCERS REGIONAL INTEGRATION REGIONAL TRADE REGIONALIZATION RESEARCH AGENDA SHIPMENTS SHIPPING SHIPPING CHARGES SHIPPING COSTS SHIPPING ROUTES SHIPS TIME SERIES TONNAGE TRADE BLOC TRADE BLOCS TRADE COSTS TRADE DATA TRADE FLOWS TRADE LIBERALIZATION TRADE PATTERNS TRAMP SHIPPING TRANSPORT COSTS TRANSPORT TECHNOLOGIES UNILATERAL TRADE UNILATERAL TRADE LIBERALIZATION VALUE OF EXPORTS VALUE OF IMPORTS VESSELS VOLUME OF TRADE WAGES WORLD TRADE DISTANCES TRANSPORT TRADE REGIONALIZATION TRANSPORT COSTS COMMUNICATION COSTS CUSTOMS EXCHANGE RATE POLICY CONSUMPTION |
| spellingShingle |
ABSOLUTE VALUE ACCESS TO TECHNOLOGY AGGREGATE TRADE AIR CARGO AIR CARGO RATES AIR TRANSPORT ANDEAN PACT APPAREL BILATERAL TRADE CAPITAL FLOWS CARTELS CIF COMMODITIES COMPETITIVENESS CONTAINERIZATION CUSTOMS DWT ECONOMIC ACTIVITY ECONOMIC GEOGRAPHY ECONOMIC HISTORIANS ELASTICITY EMPIRICAL STUDIES EXCHANGE RATE EXCHANGE RATE POLICY EXPORTS FREIGHT COSTS FREIGHT RATES FUEL TRADE GDP GLOBAL COMPETITIVENESS GRAVITY MODEL GRAVITY MODELS IMPACT OF TRADE INTERNATIONAL TRADE INVENTORY INVENTORY MANAGEMENT LABOR COSTS LOADING LORENZ CURVE MACROECONOMICS MANUFACTURING MARKET STRUCTURE OCEAN FREIGHT OCEAN TRANSPORT OIL ORDERING PORT CHARGES PORT INFRASTRUCTURE PRODUCERS REGIONAL INTEGRATION REGIONAL TRADE REGIONALIZATION RESEARCH AGENDA SHIPMENTS SHIPPING SHIPPING CHARGES SHIPPING COSTS SHIPPING ROUTES SHIPS TIME SERIES TONNAGE TRADE BLOC TRADE BLOCS TRADE COSTS TRADE DATA TRADE FLOWS TRADE LIBERALIZATION TRADE PATTERNS TRAMP SHIPPING TRANSPORT COSTS TRANSPORT TECHNOLOGIES UNILATERAL TRADE UNILATERAL TRADE LIBERALIZATION VALUE OF EXPORTS VALUE OF IMPORTS VESSELS VOLUME OF TRADE WAGES WORLD TRADE DISTANCES TRANSPORT TRADE REGIONALIZATION TRANSPORT COSTS COMMUNICATION COSTS CUSTOMS EXCHANGE RATE POLICY CONSUMPTION Carrere, Celine Schiff, Maurice On the Geography of Trade: Distance is Alive and Well |
| relation |
Policy Research Working Paper;No.3206 |
| description |
It has been widely argued that, with the
decline in trade costs (for example, transport and
communication costs), the importance of distance has
declined over time. If so, this would be a boon for
countries located far from the main centers of economic
activity. The authors examine the evolution of
countries' distance of trade (DOT) from 1962-2000. They
find that the DOT falls over time for the average country in
the world, and that the number of countries with declining
DOT is close to double those with increasing DOT. Thus,
distance has become more important over time for a majority
of countries. The authors examine various hypotheses to
explain this phenomenon. One conclusion is that the
evolution of the DOT is unrelated to that of the overall
trade costs but depends on the relative evolution of its
components. The authors also examine the impact on the DOT
of changes in production, customs, and domestic transport
costs; air relative to land and ocean transport costs;
competition, exchange rate policy, regional integration,
uneven growth, and counter-season trade; and just-in-time
inventory management. An interesting finding is that, though
regional integration has a negative impact on the DOT, the
countries forming trade blocs had a DOT that was growing
faster or falling more slowly than that of excluded
countries. The authors also offer some insights into how
these changes may affect the home bias in consumption and
the border effect. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Carrere, Celine Schiff, Maurice |
| author_facet |
Carrere, Celine Schiff, Maurice |
| author_sort |
Carrere, Celine |
| title |
On the Geography of Trade: Distance is Alive and Well |
| title_short |
On the Geography of Trade: Distance is Alive and Well |
| title_full |
On the Geography of Trade: Distance is Alive and Well |
| title_fullStr |
On the Geography of Trade: Distance is Alive and Well |
| title_full_unstemmed |
On the Geography of Trade: Distance is Alive and Well |
| title_sort |
on the geography of trade: distance is alive and well |
| publisher |
World Bank, Washington, D.C. |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2004/02/4044286/geography-trade-distance-alive-well http://hdl.handle.net/10986/14727 |
| _version_ |
1764430307003465728 |