Production Fragmentation and Transport Mode Choice in EU-28 Exports

Kemal Turkcan and Hülya Saygılı

The International Trade Journal, 2024, vol. 38, issue 6, 563-587

Abstract: This study uses detailed data on exports from the European Union (EU-28) to non-EU countries to investigate the impact of global production fragmentation on the choice of transportation modes. The article finds a positive relationship between production fragmentation and air transportation. The study also finds that air transportation is more likely to be chosen for high-value products. Additionally, the positive effect of production fragmentation on the likelihood of using air transportation is more pronounced when goods are exported to medium-range markets, upper-middle-income countries, countries with better air transportation infrastructure, and time-sensitive products.

Date: 2024
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DOI: 10.1080/08853908.2024.2312911

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