Examining the distance puzzle in the global coffee trade

Anthony Rezitis, Leonidas Zangelidis and Spyridon Karytsas

Economics and Business Letters, 2025, vol. 14, issue 2, 88-94

Abstract: We examine whether the impact of transportation costs originating from physical distance in the global coffee trade does not decrease over time (i.e., “the distance puzzle†) by applying a gravity model from 2009 to 2019. We also consider the effect of cultural distance stemming from colonial dependency, common colonizer, and common language. Our results reveal that transportation costs are initially stable but show a negative trend in the long run, particularly post-2015. Moreover, colonial dependency and common colonizers significantly increased the coffee trade.

Date: 2025
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