Exports and International Logistics

Do better international logistics reduce trade costs, raising a developing country's exports? Yes, but the magnitude of the effect depends on the country's size. The authors apply a gravity model that accounts for firm heterogeneity and multilateral resistance to a comprehensive new international logistics index. A one-standard deviation improvement in logistics is equivalent to a 14 percent reduction in distance. An average-sized developing country would raise exports by about 36 percent. Most countries are much smaller than average however, so the typical effect is 8 percent. This difference is chiefly due to multilateral resistance: it is bilateral trade costs relative to multilateral trade costs that matter for bilateral exports, and multilateral resistance is more important for small countries.

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Bibliographic Details
Main Authors: Behar, Alberto, Manners, Phil, Nelson, Benjamin
Language:English
Published: 2011-06-01
Subjects:AD VALOREM, AGGREGATE TRADE, BARRIERS TO TRADE, BENCHMARK, BENCHMARKS, BILATERAL RELATIONSHIPS, BILATERAL TRADE, BILATERAL TRADE DATA, BORDER TRADE, CHANGES IN TRADE, CONSUMERS, CONTAINERIZATION, CROSS-BORDER TRADE, CUSTOMS, CUSTOMS CLEARANCE, DEVELOPING COUNTRIES, DEVELOPING COUNTRY EXPORTS, DEVELOPMENT ECONOMICS, DEVELOPMENT POLICY, DOMESTIC DEMAND, DOMESTIC TRADE, ECONOMIC GEOGRAPHY, ECONOMIC POLICY, ECONOMICS RESEARCH, ELASTICITY, ELASTICITY OF SUBSTITUTION, ENDOGENOUS VARIABLES, EQUILIBRIUM, EXOGENOUS VARIABLES, EXPORT COSTS, EXPORT DEMAND, EXPORT DOCUMENTATION, EXPORT MARKET, EXPORT MARKETS, EXPORT PERFORMANCE, EXPORTERS, EXPORTS, FOREIGN MARKETS, FOREIGN TRADE, FREIGHT, FREIGHT COSTS, FREIGHT FORWARDERS, FUNCTIONAL FORMS, GDP, GENERAL EQUILIBRIUM, GLOBAL ECONOMY, GRAVITY EQUATION, GRAVITY ESTIMATES, GRAVITY FRAMEWORK, GRAVITY MODEL, GRAVITY MODELS, IMPACT OF TRADE, IMPORTING COUNTRY, INCOME, INDUSTRIAL PRODUCTS, INTERNATIONAL BANK, INTERNATIONAL ECONOMICS, INTERNATIONAL TRADE, LESS DEVELOPED COUNTRIES, LOGISTICS COSTS, MACROECONOMICS, MANIFESTS, MARGINAL VALUE, MONETARY POLICY, MONOPOLISTIC COMPETITION, MULTILATERAL TRADE, OCEAN FREIGHT, POLICY RESEARCH, PRICE INDEX, REGIONAL TRADE, SHIPMENTS, SHIPPING, SPECIALIZATION, TOTAL OUTPUT, TRADE BALANCE, TRADE BARRIER, TRADE BARRIERS, TRADE COSTS, TRADE DATA, TRADE FACILITATION, TRADE FLOWS, TRADE FRICTIONS, TRADE LIBERALIZATIONS, TRADE LOGISTICS, TRADE PATTERNS, TRADE SYSTEM, TRADE VOLUMES, TRANSIT, TRANSPORT COSTS, VALUE OF IMPORTS, VARIABLE COSTS, WELFARE GAINS, WORLD TRADE, WORLD TRADE ORGANISATION,
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110620085446
https://hdl.handle.net/10986/3455
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