Based on a general setup, this article shows that distance consistently accounts for about 40% of the international trade costs over the years for both developed and developing countries if we assume that trade costs take the iceberg form. The result helps us have a clear perspective of the relative importance of distance in restricting international trade.
机构:
Jawaharlal Nehru Univ, Sch Social Sci, Ctr Study Reg Dev, New Delhi, IndiaJawaharlal Nehru Univ, Sch Social Sci, Ctr Study Reg Dev, New Delhi, India
机构:
Willamette Univ, Atkinson Grad Sch Management, Salem, OR 97301 USAWestern Washington Univ, Coll Business & Econ, Dept Econ, Bellingham, WA 98225 USA
机构:
Copenhagen Business Sch, Dept Int Econ & Management, Frederiksberg, DenmarkCopenhagen Business Sch, Dept Int Econ & Management, Frederiksberg, Denmark