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Type: Conference paper
Title: Why do trade costs vary?
Author: Pomfret, R.
Sourdin, P.
Citation: Proceedings of the Empirical Investigations in Trade and Geography, 2009.
Publisher: University of Melbourne
Publisher Place: online
Issue Date: 2009
Conference Name: Empirical Investigations in Trade and Geography (2009 : Melbourne, Australia)
Statement of
Richard Pomfret and Patricia Sourdin
Abstract: As tariffs have fallen, it is apparent that trade costs are a significant obstacle to international trade and that they vary from country to country. We analyse country-by-country variations in trade costs, controlling for distance and commodity composition, and using measures of corruption/institutions. Using disaggregated Australian import data, we find that exporting countries‟ institutional quality is more strongly related to trade costs for air freight than sea freight; the relationship is commodity-specific and strongest for manufactured goods. Country-specific characteristics influencing trade costs provide a link between institutions and economic development.
Rights: Copyright status unknown
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Appears in Collections:Aurora harvest 5
Economics publications

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