Pacific Islands' Bilateral Trade: The Role of Remoteness and of Transport Costs

Lisa Borgatti

No RP2007-21, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: Bilateral trade of geographically distant countries is likely to be negatively affected by the distance separating them from their trading partners and positively affected by their remoteness, defined as the average weighted distance between two countries with weights reflecting the absorptive capacity of the partner country. In presence of competitive transport costs, the effect of remoteness and distance is diluted.

Keywords: Econometric models; Infrastructure (Economics); International trade; Transportation (search for similar items in EconPapers)
Date: 2007
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