Grounded! The Impact of Disrupted Transport Networks on International Trade

Volker Nitsch

No 332470, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: In April 2010, the eruption of the Eyjafjallajökull volcano led to a week-long closure of European airspace. Some 100,000 flights were cancelled, and the journeys of 10 million passengers were grounded. This paper examines patterns of trade adjustment when transport networks are (temporarily) disrupted. Analyzing monthly trade of European countries at highly disaggregated product level, I empirically characterize the responsiveness of trade along the intensive and the extensive margin as well as the speed of trade adjustment.

Keywords: International Relations/Trade; Public Economics (search for similar items in EconPapers)
Pages: 13
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:ags:pugtwp:332470

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