@techreport{Borgatti2007Pacific,
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. An  augmented gravity model applied to the Pacific islands' bilateral trade from 1980 to  2004 shows that a doubling of the elasticity of distance would decrease their average  bilateral trade by 80 per cent. Remoteness positively affects the Pacific islands' bilateral  trade, but does not compensate for the negative effect of distance. The opposite is found  for the Caribbean islands, where the elasticity of trade with respect to remoteness is  eight times bigger than that for the Pacific islands. By lowering transport costs, improved infrastructure fosters trade. A K-means cluster  analysis for 30 small island developing states shows that the Pacific islands belong to  the clusters with the weaker infrastructure stocks, leaving them with a large scope for  improvement.},
address = {Helsinki},
author = {Lisa Borgatti},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
isbn = {9291909602=978-92-9190-960-5},
keywords = {C23; C24; F14; O56; O57; R49; 330; bilateral trade; remoteness; transport costs; infrastructure; gravity model; Pacific islands; Internationale Wirtschaftsbeziehungen; Entfernung; Transportkosten; Gravitationsmodell; Insel; Pazifischer Raum},
language = {eng},
number = {2007/21},
publisher = {UNU-WIDER},
title = {Pacific islands' bilateral trade: The role of remoteness and of transport costs},
type = {Research Paper, UNU-WIDER, United Nations University (UNU)},
url = {http://hdl.handle.net/10419/63517},
year = {2007}
}
