Trading on Time

We determine how time delays affect trade, using newly collected data on the days it takes to move standard cargo from the factory gate to the ship in 98 countries. We estimate a difference gravity equation and find that each additional day that a product is delayed prior to being shipped reduces tr...

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Bibliographic Details
Main Authors: Djankov, Simeon, Freund, Caroline, Pham, Cong S.
Format: Journal Article
Language:EN
Published: 2012
Subjects:
Online Access:http://hdl.handle.net/10986/5656
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recordtype oai_dc
spelling okr-10986-56562021-04-23T14:02:23Z Trading on Time Djankov, Simeon Freund, Caroline Pham, Cong S. Country and Industry Studies of Trade F140 Transactional Relationships Contracts and Reputation Networks L140 International Linkages to Development Role of International Organizations O190 We determine how time delays affect trade, using newly collected data on the days it takes to move standard cargo from the factory gate to the ship in 98 countries. We estimate a difference gravity equation and find that each additional day that a product is delayed prior to being shipped reduces trade by more than 1%. Put differently, each day is equivalent to a country distancing itself from its trade partners by about 70 km on average. We also find that delays have a relatively greater impact on exports of time-sensitive goods, such as perishable agricultural products. 2012-03-30T07:33:53Z 2012-03-30T07:33:53Z 2010 Journal Article Review of Economics and Statistics 00346535 http://hdl.handle.net/10986/5656 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language EN
topic Country and Industry Studies of Trade F140
Transactional Relationships
Contracts and Reputation
Networks L140
International Linkages to Development
Role of International Organizations O190
spellingShingle Country and Industry Studies of Trade F140
Transactional Relationships
Contracts and Reputation
Networks L140
International Linkages to Development
Role of International Organizations O190
Djankov, Simeon
Freund, Caroline
Pham, Cong S.
Trading on Time
relation http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description We determine how time delays affect trade, using newly collected data on the days it takes to move standard cargo from the factory gate to the ship in 98 countries. We estimate a difference gravity equation and find that each additional day that a product is delayed prior to being shipped reduces trade by more than 1%. Put differently, each day is equivalent to a country distancing itself from its trade partners by about 70 km on average. We also find that delays have a relatively greater impact on exports of time-sensitive goods, such as perishable agricultural products.
format Journal Article
author Djankov, Simeon
Freund, Caroline
Pham, Cong S.
author_facet Djankov, Simeon
Freund, Caroline
Pham, Cong S.
author_sort Djankov, Simeon
title Trading on Time
title_short Trading on Time
title_full Trading on Time
title_fullStr Trading on Time
title_full_unstemmed Trading on Time
title_sort trading on time
publishDate 2012
url http://hdl.handle.net/10986/5656
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