Die Handelskosten von Deutschland

2010 ◽  
Vol 61 (2) ◽  
Author(s):  
Udo Broll ◽  
Andreas Förster ◽  
Stephan Rudolph
Keyword(s):  
International Economics ◽  
Bilateral Trade ◽  
Geographic Distance ◽  
Equation System ◽  
Gravity Equation ◽  
Trade Costs ◽  
Currency Unions ◽  
Simultaneous System ◽  
Tariff Rates ◽  
Law Of Gravity

SummaryThe gravity equation for international trade is probably the most important tool in international economics to explain and estimate trade flows. In its simplest form, it states that the exports between any two given countries are a multiplicative function of these countries’ economic size, as measured by GDP, and their bilateral trade costs. The idea and the name is going back from the similarity to Isaac Newton’s law of gravity where the attraction force between two physical bodies equals the product of their masses divided by the squared distance between the bodies. The gravity equation in international economics becomes estimable after log-linearizing and parameterizing it. Export and GDP data are broadly available in several databases. Trade costs are not directly measurable and are therefore usually proxied by geographic distance and a set of further proxy variables like: access to the sea, common border, common language, membership in a certain group of countries, membership in a country union, and others. Trade costs proxies can be subdivided into geographical and political variables. Geographical properties of a country can hardly be changed by policy. However policymakers can influence trade costs through tariff rates, currency unions, free trade agreements, membership in certain country groups and many other measures. Since trade costs are not directly measureable, we will use a novel index of comprehensive trade costs to estimate a simultaneous system, first of a gravity equation and second of a trade cost equation for Germany. In our study, we demonstrate a new way to solve the complex equation system of multilateral resistances and compute them for a set of OECD countries.

scholarly journals Gravity and Heterogeneous Trade Cost Elasticities

2021 ◽  
Author(s):  
Natalie Chen ◽  
Dennis Novy
Keyword(s):  
International Trade ◽  
Bilateral Trade ◽  
Trade Agreements ◽  
Gravity Equation ◽  
Trade Costs ◽  
Currency Unions ◽  
Trade Cost ◽  
New Approach ◽  
Substantial Heterogeneity

Abstract How do trade costs affect international trade? This paper offers a new approach. We rely on a flexible gravity equation that predicts variable trade cost elasticities, both across and within country pairs. We apply this framework to popular trade cost variables such as currency unions, trade agreements, and WTO membership. While we estimate that these variables are associated with increased bilateral trade on average, we find substantial heterogeneity. Consistent with the predictions of our framework, trade cost effects are strong for ‘thin’ bilateral relationships characterised by small import shares, and weak or even zero for ‘thick’ relationships.

MEASURING TRADE COSTS FROM RELATIVE PRICES: THE ROLE OF LOCATION AND GOODS CHARACTERISTICS

2014 ◽  
Vol 59 (05) ◽  
pp. 1450041
Author(s):  
IN HUH ◽  
INKOO LEE
Keyword(s):  
Geographic Distance ◽  
Trade Costs ◽  
Trade Barriers ◽  
Trade Cost ◽  
Relative Prices ◽  
Economic Determinants

This paper estimates the trade costs from international relative prices, and studies the economic determinants of implied trade costs. We find that the magnitude of trade costs depends on the characteristics of both the type of good and set of locations under examination. In particular, it is found that higher non-traded input share and trade barriers, and lower tradability of goods lead to a larger trade cost, as does a lower proximity of geographic distance between locations.

Can Price Dispersion Reveal Distance-Related Trade Costs? Evidence from the United States

2013 ◽  
Vol 13 (2) ◽  
pp. 151-173 ◽  
Author(s):  
Michael A. Anderson ◽  
Kurt C. Schaefer ◽  
Stephen L. S. Smith
Keyword(s):  
United States ◽  
Market Integration ◽  
Price Dispersion ◽  
The United States ◽  
Trade Costs ◽  
Currency Unions ◽  
States Data ◽  
Dispersion Measures ◽  
Spatial Price ◽  
Related Trade

We offer insights on how distance-related trade costs may best be inferred from price-dispersion measures. Using a simple spatial model of price dispersion, we argue that measures of price dispersion that are not spatially informed can mislead researchers into concluding that distance-related costs are small even when such costs are the major determinant of price dispersion. With intra-United States data on eleven goods, we find that distance-related costs are large and are indeed underestimated when inferred from standard, non-spatial, price dispersion measures. Our empirical findings have implications for studies of market integration policies (such as trade liberalization and currency unions) and the significance of economic geography.

scholarly journals The Role of Trade Costs in the Russian-Paraguayan Trade Relations

2019 ◽  
Vol 1 (2) ◽  
pp. 5
Author(s):  
Valeriia S. Ryzhkova ◽  
Alexandra G. Koval
Keyword(s):  
Latin American ◽  
Bilateral Trade ◽  
Trade Costs ◽  
Cultural Barriers ◽  
Export Diversification ◽  
Policy Makers ◽  
Trade Relations ◽  
Mutual Interest ◽  
Latin American Countries

The changed geopolitical situation and deterioration of Russia-West relations has induced the expansion of trade and economic cooperation between Russia and Latin American countries. Currently, Paraguay is explicitly showing its readiness to strengthen recently built trade relations with Russia. In order to fuel their increased mutual interest, it is crucial to struggle with impediments that hinder the trade between them. The export potential assessments demonstrate that Russia and Paraguay indeed have potential to intensify bilateral trade, even though the opportunities for export diversification are quite limited. The authors conduct a survey to identify the major trade costs and their role in the development of the Russian-Paraguayan trade relations. The survey findings reveal that transportation and logistics costs significantly impede the exports of both countries as well as information-related obstacles represent the top concern for Russian export companies, while non-tariff measures, language and cultural barriers are relevant for Paraguayan firms. In order to intensify the Russian-Paraguayan commercial relations, the policy makers could deal with these barriers via a higher exchange of market information through different institutional channels.

scholarly journals Stylized Facts on Bilateral Trade and Currency Unions: Implications for Africa

2006 ◽  
Author(s):  
Charalambos G. Tsangarides ◽  
Pierre Ewenczyk ◽  
Michal Hulej
Keyword(s):  
Bilateral Trade ◽  
Currency Unions ◽  
Stylized Facts

scholarly journals Yield Variability and Agricultural Trade

2009 ◽  
Vol 38 (2) ◽  
pp. 258-270 ◽  
Author(s):  
Jeffrey J. Reimer ◽  
Man Li
Keyword(s):  
Crop Yield ◽  
Low Income ◽  
Bilateral Trade ◽  
Agricultural Trade ◽  
Trade Costs ◽  
Low Income Countries ◽  
Yield Variability ◽  
Trade Patterns ◽  
Trade Model ◽  
Cereal Grain

We examine how changes in yield variability affect the welfare of cereal grain and oilseed buyers and producers around the world. We simulate trade patterns and welfare for 21 countries with a Ricardian trade model that incorporates bilateral trade costs and crop yield distributions. The model shows that world trade volumes would need to increase substantially if crop yield variability were to rise. Net welfare effects, however, are moderate so long as countries do not resort to policies that inhibit trade, such as export restrictions or measures to promote self-sufficiency in crops. Low-income countries suffer the most from increases in yield variability, due to higher bilateral trade costs and lower-than-average productivity.

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