Geographical factors and transport infrastructure are two of the key determinants that influence international competitiveness. In this sense, the quality of such infrastructure and how widespread it is, the distribution and capacity of logistics facilities in a country, as well as the number of private operators and their degree of specialisation, all play an increasingly important role in the design of business strategies aimed at increasing a country's share of the international market. Until recently, however, availability and access to logistics services have been considered secondary factors when defining business competitiveness. This paper estimates an augmented gravity model of trade that specifically includes logistics and transport infrastructure indicators as explanatory variables. The model is estimated by using bilateral exports from 19 Spanish regions to 64 destinations (45 countries and 19 Spanish regions) with data for the period 2003 to 2007. The findings show that logistics is indeed important for the analysis of trade flows in goods and they highlight the importance of logistics measures at the regional level. In particular, the number, size and quality of logistics facilities positively influence export flows.

Registro de acceso restringido Este recurso no está disponible en acceso abierto por política de la editorial. No obstante, se puede acceder al texto completo desde la Universitat Jaume I o si el usuario cuenta con suscripción. Registre d'accés restringit Aquest recurs no està disponible en accés obert per política de l'editorial. No obstant això, es pot accedir al text complet des de la Universitat Jaume I o si l'usuari compta amb subscripció. Restricted access item This item isn't open access because of publisher's policy. The full--text version is only available from Jaume I University or if the user has a running suscription to the publisher's contents.

Where a licence is displayed above, please note the terms and conditions of the licence govern your use of this document.When citing, please reference the published version. Take down policyWhile the University of Birmingham exercises care and attention in making items available there are rare occasions when an item has been uploaded in error or has been deemed to be commercially or otherwise sensitive.

The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

This paper focuses on the impact of maritime piracy on international trade. Piracy increases the cost of international maritime transport through an increase in insecurity regarding goods deliveries. Bilateral trade flows between the main European and Asian countries over the 1999 to 2008 period are used to estimate an augmented gravity model that includes various measures of piracy acts. We found robust evidence indicating that maritime piracy reduces the volume of trade; the effect of ten additional vessels hijacked being associated to an 11% decrease in exports. Consequently, the current cost of piracy in terms of international trade destruction is estimated at 24.5 billion dollars.