Do transport costs have a differential effect on trade at the sectoral level?

Abstract

This article aims to analyse the determinants of transport costs and to investigate their influence in international trade with a sample of disaggregate trade data. First, we estimate a transport-cost function using cross-section data on maritime and overland transport for four sectors: agro-industry, ceramic tiles, motor vehicle parts and accessories, and electrical and mechanical household appliances, obtained from interviews held with Spanish exporters and logistics operators in 2001.Second, we study the relationship between transport costs and trade and estimate the elasticity of trade with respect to transport costs for each sector. Important differences for high value-and low value-added sectors are observed. The trade-equation estimation shows that higher transport costs significantly deter trade, especially in high value-added sectors.

The log of gravity revisited

“…The log-linear models (columns 1 to 3) show more accurate coefficients than the GLM. (1980)(1981)(1982)(1983)(1984)(1985)(1986)(1987)(1988)(1989)(1990)(1991)(1992)(1993)(1994)(1995)(1996)(1997)(1998)(1999) Since many other issues come into play when estimated gravity equations with panel data, as for example what is the correct way to control for multilateral resistance, we refer to the results obtained in Martínez-Zarzoso et al (2008) for the 47 country sample.…”

“…Therefore, it could be appropriate for other typical applications of 1 See Oguledo, V.I. and Macphee (1994) for a review of gravity studies using aggregated trade and Martínez-Zarzoso, Pérez-García and Suárez Burguet (2008) for an application using sectoral trade data. 2 In Chapter 5, Feenstra (2004) presents a revision of articles applying the gravity model for international trade.…”

Evaluating the transport-mode-specific trade effects of different transport infrastructure types

“…Moreover, Martínez-Zarzoso et al (2003) consider both sea and road trade flows in their analysis, but they use one aggregate infrastructure index that includes roads, paved roads, railroads and telephones. Martínez-Zarzoso et al (2008) also consider sea and road trade flows and additionally include separate measures for road and port infrastructure. However, they only estimate the separate infrastructure e↵ects on transport costs, but not on trade flows.…”

Transportation and The International Trade of Eastern and Southern Africa

“…Martínez‐Zarzoso et al . () interviewed Spanish exporters and logistics operators in 2001 to obtain transport cost data, regressed trade on this information, and found export elasticities of −3.0 for distance, −2.8 to −3.9 for high value‐added sectors and −1.2 to −1.5 for low value‐added sectors. In their gravity model for 1990, for instance, Limao and Venables () found coefficients (trade elasticities) of −2.2 to −3.1 for a transport cost variable constructed from cif/fob differentials and infrastructure measures.…”