On the Determinants of Regional Trade Flows

Nicolini, Rosella

doi:10.1177/0160017603259181

Cited by 14 publications

(28 citation statements)

References 6 publications

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“…The gravity model states that bilateral trade flows between countries are determined by their respective incomes, the distance between them and other country-specific factors such as language, geographical continuity, trade agreements and colonial ties (Deardorff 1995;Head 2003). The general conclusion from the existing empirical studies is that the further the countries are located from one another, the lower are the trade flows due to increasing transport costs (Brakman et al 2001;Nicolini 2003).…”

Section: Regional Trade Modelmentioning

confidence: 99%

“…Understanding these determinants may be important given the wide consensus that exists on the positive impact of export growth on economic growth and development (see Fosu 1990aFosu , 1990band more recently Foster 2006;Hausman et al 2006) and on the potential for differential export performance to contribute to spatial inequality (see Kanbur and Venables 2005). Existing studies on this topic focus only on developed countries (for example Nicolini 2003). A developing country perspective is given in this paper using data from South Africa's 354 magisterial districts.…”

mentioning

confidence: 97%

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The Determinants of Regional Manufactured Exports from a Developing Country

Matthee

Naudé

2008

International Regional Science Review

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In this paper, the question of the location of exporters of manufactured goods within a country is investigated. Based on insights from new trade theory, the new economic geography (NEG) and gravity-equation modelling, an empirical model is specified with agglomeration and increasing returns (the home market effect) and transport costs (proxied by distance) as major determinants of the location decision of exporters. Data from 354 magisterial districts in South Africa are used with a variety of estimators (OLS, Tobit, RE-Tobit) and allowances for data shortcomings (bootstrapped standard errors and analytical weights) to identify the determinants of regional manufactured exports. It is found that the home-market effect (measured by the size of local GDP) and distance (measured as the distance in km to the nearest port) are significant determinants of regional manufactured exports. This paper contributes to the literature by using developing country data, and by adding to the small literature on this topic. This paper complements recent work on the determinants of exports from European regions and finds that the home market effect is relatively more important in the developing country context (South Africa), a finding consistent with theoretical NEG model.

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Section: Regional Trade Modelmentioning

confidence: 99%

mentioning

confidence: 97%

The Determinants of Regional Manufactured Exports from a Developing Country

Matthee

Naudé

2008

International Regional Science Review

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“…Costa-Campi and Viladecans-Marsal, 1999), the shortest travel time to the main seaports (see, e.g., Albarrán et al, 2009), binary variables capturing the presence of an airport or a port in the origin region (see, e.g., Costa-Campi and Viladecans-Marsal, 1999), and regional transport infrastructure density (see, e.g., Nicolini, 2003). Evidence based on these crude approximations of available transport infrastructure, and thus of the actual costs of moving goods within countries, consistently indicates that this infrastructure have a significant effect on exports.…”

Section: Introductionmentioning

confidence: 99%

Shaky roads and trembling exports: Assessing the trade effects of domestic infrastructure using a natural experiment

Martincus

Blyde

2013

Journal of International Economics

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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. The opinions expressed in this publication are those of the authors and do not necessarily reflect the views of the Inter-American Development Bank, its Board of Directors, or the countries they represent. Terms of use: Documents inThe unauthorized commercial use of Bank documents is prohibited and may be punishable under the Bank's policies and/or applicable laws.Copyright © Inter-American Development Bank. This working paper may be reproduced for any non-commercial purpose. It may also be reproduced in any academic journal indexed by the American Economic Association's EconLit, with previous consent by the Inter-American Development Bank (IDB), provided that the IDB is credited and that the author(s) receive no income from the publication. Our knowledge of the trade effects of domestic infrastructure is very limited. The reason is twofold. First, data needed to examine these effects are not readily available. Second, identifying such effects requires properly addressing potential endogeneity problems affecting the relationship between internal infrastructure and trade. In this paper, we overcome these limitations by combining firm-level data with detailed geo-referenced information on Chile and by exploiting the earthquake that took place in this country in 2010 as an exogenous source of variation in available infrastructure and thereby in transport costs. We find that diminished transportation infrastructure had a significant negative impact on firms' exports.

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“…Some indirect supporting evidence on the role of domestic differences in access to export markets is provided by Nicolini (2003). Using a gravity model approach for aggregate trade among European regions, she finds that distance reduces trade while the density of local transport infrastructure positively affects export flows.…”

Section: Exports and Transport Costsmentioning

confidence: 99%

Domestic transport infrastructure and firms’ export market participation

2011

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Investment in transport infrastructure reduces the cost of distance and enables firms to establish contacts over larger distances. Using data from a panel of Spanish manufacturing firms and geographic information system techniques, this article studies the impact of domestic transport cost reductions on firms' export market participation, taking into account the role of entry costs and other firm characteristics. We estimate dynamic probability models, controlling for the unobserved heterogeneity of firms and for the simultaneity of firms' export and location decisions. Our results demonstrate a positive effect of domestic transport infrastructure improvements on small and medium-sized firms' probability of exporting.

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On the Determinants of Regional Trade Flows

Cited by 14 publications

References 6 publications

The Determinants of Regional Manufactured Exports from a Developing Country

The Determinants of Regional Manufactured Exports from a Developing Country

Shaky roads and trembling exports: Assessing the trade effects of domestic infrastructure using a natural experiment

Domestic transport infrastructure and firms’ export market participation

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