The relative importance of distance in restricting international trade

Xuebing Yang

Applied Economics Letters, 2013, vol. 20, issue 17, 1548-1552

Abstract: Based on a general setup, this article shows that distance consistently accounts for about 40% of the international trade costs over the years for both developed and developing countries if we assume that trade costs take the iceberg form. The result helps us have a clear perspective of the relative importance of distance in restricting international trade.

Date: 2013
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DOI: 10.1080/13504851.2013.829179

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