Communication Costs and Agro-Food Trade in OECD Countries

Stefan Bojnec and Imre Fertő ()

No 50937, 83rd Annual Conference, March 30-April 1, 2009, Dublin, Ireland from Agricultural Economics Society

Abstract: The paper analyses the effects of communication costs for agro-food trade in OECD countries between 1995 and 2003 using gravity model. We find that the link between the communication costs and agro-food trade flows in developed countries is significantly stronger for agricultural than for food products. The improved communication services reduce trade transaction costs. The estimations also confirmed importance of the economy size, level of development in importer countries, and trade distance. The other traditional gravity variables like contiguity, language and regional free trade agreements have significant impacts in the majority of specifications

Keywords: Communication costs; Agro-food trade; Gravity model; International Relations/Trade; F14; F23; Q17 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr
Date: 2009-04-01
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