Assessing the impact of communication costs on international trade

Fink, Carsten; Mattoo, Aaditya; Neagu, Ileana Cristina

doi:10.1016/j.jinteco.2004.09.006

Cited by 236 publications

(167 citation statements)

References 25 publications

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“…Moreover, the language channel appears to depend on direct (spoken) communication rather than indirect communication by mail. This is in line with Fink et al (2005), who demonstrate the importance of international calling prices for the volume of bilateral trade. Finally, the significant negative relationship between the volume of trade and the distance-transport cost interaction holds potential for future applications of this method-ology.…”

Section: Resultssupporting

confidence: 89%

Talking Trade: Language Barriers in Intra-Canadian Commerce

Sauter

2009

SSRN Journal

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This paper tests for one mechanism that can explain the existence of a language barrier to trade. Specifically, I ask if those industries that require more cross-border communication in order to export their products trade more between Canadian provinces that know the other's language(s). I find that trade in industries with a need to communicate directly (orally) with importers increases with the probability that people in another province speak the same language. This finding can fill a missing link in the empirical trade literature, which lacked convincing arguments for the observed correlation between language commonality and the total volume of trade.

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Section: Resultssupporting

confidence: 89%

Talking Trade: Language Barriers in Intra-Canadian Commerce

Sauter

2009

SSRN Journal

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“…Hence, these offices are in fact an additional presence of trade promotion institutions in the importer country and therefore their impact on trade is most properly compared to that of additional diplomatic missions as opposed to the existence of such missions at all (i.e., a count variable instead of a binary variable). 5 Consistently, the existent empirical evidence indicates that the trade reducing effect of communication costs is larger for differentiated goods (see Fink et al, 2005). Similarly, Portes et al (2001) find that information flows are more important for less value of the information institutions disseminate and henceforth their effects may be also expected to differ across goods according to their degree of differentiation.…”

Section: Empirical Methodologymentioning

confidence: 79%

Information barriers, export promotion institutions, and the extensive margin of trade

et al. 2010

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. [1995][1996][1997][1998][1999][2000][2001][2002][2003][2004]. We find that the presence of offices of export promotion agencies abroad favors an increase in the number of differentiated goods that are exported, whereas a larger number of diplomatic representations in the importer countries seem to be associated with exports of a larger number of homogeneous goods. Terms of use: Documents in

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“…Countries with access to Internet facilities seem to have a higher propensity to export. Freund & Weinhold (2000) illustrate that a 10% increase in web hosts increase trade by 1%, while Fink et al (2005) show the importance of communications and calculate that a 10% fall in telecom costs increase trade by 8%. A multi-dimensional approach is adopted by to analyse various aspects of trade facilitation.…”

Section: Trade Facilitationmentioning

confidence: 99%

The impact of trade facilitation factors on South Africa's exports to a selection of African countries

Jordaan

2014

Development Southern Africa

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Economic growth can be enhanced through increased trade among countries, provided the correct institutional structures are in place. A country's trade is dependent not only on its own trade facilitation reforms but also on those of the trading partners. This paper, using an augmented gravity model, examines trade facilitation factors that impact on South Africa's exports to other selected African countries. The results of the estimation reveal the following. An improvement in the customs environment within the importing country provides the largest gain in terms of increasing trade flows, followed by the regulatory environment and domestic infrastructure. Furthermore, adjacency and common language impact positively on South African exports, while distance between countries impacts negatively on it. Being part of the Southern African Development Community is also enhancing exports from South Africa, compared with being part of the East African Community.

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Assessing the impact of communication costs on international trade

Cited by 236 publications

References 25 publications

Talking Trade: Language Barriers in Intra-Canadian Commerce

Talking Trade: Language Barriers in Intra-Canadian Commerce

Information barriers, export promotion institutions, and the extensive margin of trade

The impact of trade facilitation factors on South Africa's exports to a selection of African countries

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